Discussion Archives:Community Property Rules for RDPs

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Discussion Forum Index --> Advanced Tax Questions --> Community Property Rules for RDPs


Discussion Forum Index --> Tax Questions --> Community Property Rules for RDPs

Taxinca (talk|edits) said:

11 August 2010
I have been asked by clients (Calif Register Domestic Partners) if they are required to follow the new community property rules stated in CCA 201021050. They would each pay more tax under the new rules.

Their position is that a CCA is advisory and not legally binding. From what I've read they are correct in the same sense that a PLR can not be cited as precedent...but I am not sure and am also reluctant to advise them to disregard IRS policy.

DaveFogel (talk|edits) said:

11 August 2010
Did you read CCA 201021050? http://www.irs.gov/pub/irs-wd/1021050.pdf

"Consequently, for tax years beginning after December 31, 2006, a California registered domestic partner must report one-half of the community income, whether received in the form of compensation for personal services or income from property, on his or her federal income tax return."

"For tax years beginning before June 1, 2010, registered domestic partners may, but are not required to, amend their returns to report income in accordance with this CCA."

R2 (talk|edits) said:

11 August 2010
A CCA is not a law. However, I am not sure that CCA 201021050 really changes anything.

Taxinca (talk|edits) said:

12 August 2010
Is a CCA binding or is it just advisory? This is the question being posed by my clients.

What should a tax practitioner do if a client wants to disregard a CCA because he believes it does not have the force and effect of law?

Thanks.

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