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![handle is hein.gao/gaobaaclt0001 and id is 1 raw text is:
DOCUMENT RESUME
02801 - ( A1993060]
rNeed to Amend the Internal Revenue ^,:de t' Extend Iniocent
Spouse Rule to Community Property Situa..iorsy. GGD-77-56;
B-137762. Jujy 12, 1977. 2 pp. + enclosure it pp.).
Report to Rep. Al Ullman, Chairman, Joint Committee on Taxation;
by Elmer B. Staats, Comptroller General.
Issue Area: Tax Administration (2700).
Contact: General Government Div.
Budget Function: General Governmeit: Central Fiscal Operations
(803).
Organizaticn Concerned: Department of the Treasury; Internal
Revenu.a Service.
Congressional flelevance: Joint Comittee on Taxation.
Authority: (P.L. 91-679: 84 Stat. 2063): Internal Revenue Code,
sec. 6013(e). 1?oe v. Seaborn, 282 U.S. 101 (1930). United
States v. Mitchell, 403 U.S. 190 (1971).
Under current law, the Internal Revenue Code grants
relief to aai innocent spouse on a fraudulent joint return
where he or she neither benefits from nor receives income
received by the other spouse and not reported. The applicable
section of the coqe does not apply if separate returns are filel
by two married persons. Findings/Conclusions: Typically, the
cases hlave concerned mairied individuals living apart but not
lcgally separated or di /orced, where the husband has
appropriated the entirz community income to his own use, and the
wife, filing separately, receives to suppcrt or other financial
assistance from the husband. The Internal Revenue Service (IRS)
has proceeded against the wife directly as the person primarily
liable for the Federal income tax on her one-half share,
notwithstanding that the husband has appropriated the entire
community income to his own use. It does not appear that IRS has
ever proceeded against the husband to collect the wife's
one-half share of the community tax liability in this situation.
Recommendations: Section 6013 of the Internal Revenue Code
should be amended so that, where certain conditions exist, the
separated spouse who does not receive the one-half of community
income to which he or she has a vestel right under State law is
relieved of tax liability to the extent that such liability is
attributable to the omission from gross income of the on-'.ialf
of community income not received. (SC)](ViewImageLocal?handle=hein.gao/gaobaaclt0001&div=1&collection=&method=preview&ext=.png&size=3)