Opinion ID: 3052380
Heading Depth: 2
Heading Rank: 1

Heading: Federal Income Tax Law and

Text: California Community Property Law Married couples who file joint returns are generally jointly and severally liable for the full amount of tax due on their combined incomes, even though one spouse may have earned more than the other. See § 6013(d)(3); Ness v. Comm’r, 954 F.2d 1495, 1497 (9th Cir. 1992). Married couples may avoid joint liability by filing separate returns and paying tax at the rates applicable to married persons filing separate returns. § 1(d). ORDLOCK v. COMMISSIONER OF INTERNAL REVENUE 9217 Under § 6321, if a taxpayer does not pay an assessed tax after a notice and demand, a lien in favor of the United States in the amount of the delinquency arises “upon all property and rights to property, whether real or personal” belonging to the taxpayer. E.g., United States v. Craft, 535 U.S. 274, 276 (2002). It is well established that state law controls the determination of the nature of the legal interest the taxpayer has in property for purposes of § 6321. In re McIntyre, 222 F.3d 655, 658 (9th Cir. 2000). In California, all property acquired by a married person during the marriage is generally considered community property. See Cal. Fam. Code § 760. Under § 910(a) of the California Family Code, community property is liable not only for the joint debts of the couple, but also for the separate liabilities of one spouse: Except as otherwise expressly provided by statute, the community estate is liable for a debt incurred by either spouse before or during marriage, regardless of which spouse has the management and control of the property and regardless of whether one or both spouses are parties to the debt or to a judgment for the debt. This state law reflects the principle articulated by the California Supreme Court that “the policy of protecting the . . . creditors [of a spouse] outweighs the policy of protecting family income . . . .” Babb v. Schmidt, 496 F.2d 957, 959 (9th Cir. 1974) (quoting Weinberg v. Weinberg, 432 P.2d 709, 711 (Cal. 1967)).