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do not fit one of the other categories of section 879(a), and are
also classified as “other such community income”.
Other such community income is treated under the applicable
community property law. Therefore, the half of the $34,288 of
community income reported on petitioner’s return, or $17,144,
cannot be treated as Mr. Bennett’s income, and she is not
entitled to further relief under section 66(c)(2).
B. The Items of Community Income From Mr. Bennett’s Return
Fail To Satisfy Section 66(c)(3)
Section 66(c)(3) provides that petitioner must establish
that she did not know, and had no reason to know, of the
community income. With regard to the items of community income
reflected on Mr. Bennett’s return ($40,054 of wages, $4,834 of
taxable interest, and $12,250 of other income), petitioner does
not satisfy section 66(c)(3).
A taxpayer’s knowledge of an item of community income must
be determined with reference to her knowledge of the particular
income-producing activity. See McGee v. Commissioner, 979 F.2d
66, 70 (5th Cir. 1992), affg. T.C. Memo. 1991-510; Hardy v.
Commissioner, T.C. Memo. 1997-97, affd. 181 F.3d 1002 (9th Cir.
1999). Petitioner was aware that Mr. Bennett was employed by
Premium Fresh Juice and was aware that his wages were used to pay
their household living expenses. While petitioner may not have
known the precise amount of Mr. Bennett’s salary, she had
knowledge of his employment. Accordingly, we find that
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