- 16 -
portion of either) attributable to any item for which
relief is not available under the preceding sentence,
the Secretary may relieve such individual of such
liability.
A. The Items of Community Income From Petitioner’s Return
Fail To Satisfy Section 66(c)(2)
Section 66(c)(2) provides that petitioner must not have
included in gross income an item of community income properly
includable therein, which, in accordance with the rules contained
in section 879(a), would be treated as the income of Mr. Bennett.
As it relates to the items of community income reflected on her
1998 return ($31,385 of “wages”, $723 of taxable interest, and
$2,180 of IRA distributions), petitioner fails to satisfy either
of the conditions for relief under section 66(c)(2).
The first condition, that petitioner must not “include in
gross income for such taxable year an item of community income
properly includible therein”, is not satisfied because
petitioner’s original 1998 return reported the items of community
income from which she seeks relief. Although petitioner
subsequently submitted an amended “zero return” claiming no
income, this amended return does not negate the filing of the
original return.
Even if her amended return were sufficient to satisfy the
first requirement of section 66(c)(2), petitioner would not
satisfy the second requirement that the items of community income
“would be treated as the income of the other spouse” in
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011