Shuang-Di Sun Bennett - Page 18

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          accordance with the rules provided in section 879(a).  Section              
          879(a) provides that (1) “earned income”10 is attributable to the           
          spouse who performed the services; (2) trade or business income             
          is attributable in accordance with section 1402(a)(5); (3)                  
          community income not described in either (1) or (2) which is                
          derived from the spouse’s separate property is attributable to              
          that spouse; and (4) all other items of community income are                
          attributable in accordance with the applicable community property           
          law.  We conclude that the correct classification of all the                
          items of community income reported on petitioner’s return is                
          under the category of “other such community income” under section           
          879(a)(4).  Although payroll agents acting on behalf of Premium             
          Fresh Juice reported that petitioner earned $31,385 of wages in             
          1998, the payroll agents did not verify that petitioner performed           
          services for Premium Fresh Juice and acted solely on the basis of           
          payroll information submitted to them by Mr. Bennett.                       
          Petitioner’s testimony that she never worked for Mr. Bennett’s              
          company was credible, and as a result, we find that the $31,385             
          is correctly classified as “other such community income” rather             
          than wages.  The taxable interest and the IRA distribution also             

               10  For purposes of sec. 879(a), “earned income” is defined            
          by reference to sec. 911(d)(2), which provides that the term                
          means “wages, salaries, or professional fees, or and other                  
          amounts received as compensation for personal services actually             

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