Treatment of Community Income for Spouses Living Apart (Part II) — footnotes

³⁴Rev. Proc. 2003-61, 2003-2 CB 296.

³⁵See Regs. Sec. 1.66-4(a)(1).

³⁶See Prop. Regs. Sec. 1.66-4(a)(1)(i).

³⁷See Regs. Sec. 1.66-4(a)(1)(i). The change was made when a commentator noted that Sec. 66(c) requires only the requesting spouse not to have filed a joint return. Sec. 66(c)’s legislative history also supports this interpretation; see TD 9074 (7/10/03). Prior to this clarification, there was a split of authority on the issue in the Tax Court. Bobbie J. Roberts, TC Memo 1987-391, aff’d, 860 F2d 1235 (5th Cir. 1988), implied that the requesting spouse must file a separate return, but later cases did not require such a filing; see Patti Ollestadt, TC Memo 1996-139, and Sandra M. Costa, TC Memo 1990-572.

³⁸See Regs. Sec. 1.66-4(a)(1)(ii).

³⁹See Regs. Sec. 1.66-4(a)(2)(ii).

⁴⁰Dorothy D. McGee, 979 F2d 66 (5th Cir. 1992), cited in Regs. Sec. 1.66-4(a)(2)(ii).

⁴¹Donna B. Hilton, TC Memo 1990-379 (holding that a spouse did not have reason to know of her husband’s income from illegal activities because she had no actual knowledge of the activity and did not benefit from the illegal income).

⁴²See discussion in Part I of this article in the March 2006 issue.

⁴³See Regs. Sec. 1.66-4(a)(1)(iv).

⁴⁴See Regs. Sec. 1.66-4(a)(3).

⁴⁵See Prop. Regs. Sec. 1.66-4(a)(3).

⁴⁶See Preamble, TD 9074 (7/10/03).

⁴⁷Robert L. Beck, TC Memo 2001-198, acq. IRB 2002-49.

⁴⁸Cathy Hardy, TC Memo 1997-97, aff’d, 181 F3d 1002 (9th Cir. 1999)

⁴⁹See Regs. Sec. 1.66-4(j)(i).

⁵⁰Preamble, TD 9074, note 46 supra; and Regs. Sec. 1.66-4(c).

⁵¹See Regs. Sec. 1.66-4(j)(ii).

⁵²Rev. Proc. 2000-15, 2000-1 CB 447, superseded by Rev. Proc. 2003-61, 2003-2 CB 296.

⁵³See Regs. Sec. 1.66-4(b).

⁵⁴Rev. Proc. 2003-61, note 34 supra, at Section 1.01. This revenue procedure and its predecessor, Rev. Proc. 2000-15, note 52 supra, also applies to Sec. 6015(f), which provides equitable relief from joint and severable liability on a joint tax return (innocent spouse rule). Secs. 66(c) and 6015(f) have similar standards for granting equitable relief.

⁵⁵Rev. Proc. 2003-61, note 34 supra, at Section 4.01(3).

⁵⁶Property of the requesting spouse is property in which the requesting spouse has an ownership interest (other than solely through the operation of community property laws), including property owned jointly with the nonrequesting spouse; see Regs. Sec. 1.6015-5(b)(2)(i).

⁵⁷Rev. Proc. 2003-61, note 34 supra, at Section 4.01(4).

⁵⁸Id., at Section 4.01(5).

⁵⁹See Sec. 6015(c)(4)(B); and Regs. Sec. 1.6015-3(c)(3).

⁶⁰Rev. Proc. 2003-61, note 34 supra, at Section 4.01(6).

⁶¹Id., at Section 4.01(7).

⁶²Id., at Section 4.01(7)(a).

⁶³Id., at Section 4.01(7)(b).

⁶⁴Id., at Section 4.01(7)(c).

⁶⁵Id., at Section 4.01(7)(d).

⁶⁶Id., at Section 4.03(a)(i); and Regs. Secs. 1.66-2(c) and 1.6015-3(b)(i).

⁶⁷Id., at Sections 4.03(a)(ii) and 4.02(1)(c).

⁶⁸See Regs. Sec. 301.6343-1(b)(4) (as amended in 1994).

⁶⁹Rev. Proc. 2000-15, note 52 supra, at Section 4.03(2)(b), superceded by Rev. Proc. 2003-61.

⁷⁰Rev. Proc. 2003-61, note 34 supra, at Section 4.03(a)(iii).

⁷¹See Regs. Sec. 1.66-4(a)(2)(i).

⁷²Rev. Proc. 2003-61, note 34 supra, at Section 4.03(a)(iii).

⁷³Id., at Section 4.03(a)(iv).

⁷⁴Id., at Section 4.03(a)(v).

⁷⁵See Prop. Regs. Sec. 1.66-4(a)(3).

⁷⁶See Regs. Sec. 1.66-4(a)(3).

⁷⁷See Regs. Sec. 1.6015-2(d).

⁷⁸Raymond Kling, TC Memo 2001-78.

⁷⁹Cathy Hardy, note 48 supra.

⁸⁰Rev. Proc. 2003-61, note 34 supra, at Section 4.03(a)(vi).

⁸¹Robert L. Beck, note 47 supra.

⁸²Rev. Proc. 2003-61, note 34 supra, at Section 4.03(b).

⁸³Id., at Section 4.03(b)(i).

⁸⁴Id., at Section 4.03(b)(ii).