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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
rendered”.
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