Document: 29 L.Ed.2d 406 91 S.Ct. 1763 403 U.S. 190 UNITED STATES et al., Petitioners,v.Anne Goyne MITCHELL al. No. 798. Argued April 20, 1971. Decided June 7, Syllabus A married woman domiciled in Louisiana, where under state law the wife has a present vested interest community property equal to that of her husband, is personally liable for federal income taxes on one-half realized during existence community, notwithstanding subsequent renunciation rights, since federal, not state, governs what exempt from taxation. Pp. 194—206 5 Cir., 430 F.2d 1 and 7 reversed. William Terry Bray, Austin, Tex., petitioners. Paul K. Kirkpatrick, Jr., Washington, D.C., respondent Anne Mitchell. Patrick M. Schott, New Orleans, La., Frances Angello. Mr. Justice BLACKMUN delivered opinion Court. The petition here, arising two cases below, presents issue whether State Louisiana tax half despite exercise statutory right exoneration. arises context one case, divorce, and, other, husband's death. 2 * Mrs. Mitchell Sims. Commissioner Internal Revenue determined deficiencies against Jane Isabell Sims years 1955—1959, inclusive. These were additions § 6651(a) (failure file return), 6653(a) (underpayment due negligence or intentional disregard rules regulations), 6654 estimated tax) Code 1954, 26 U.S.C. §§ 6651(a), 6653(a), 6654. sister determinations as made 6901 Mitchell's transferee without consideration. 3 Emmett Bell Mitchell, 1946. They lived Louisiana. In July 1960, however, they began live separately apart. August 1961 sued husband court separation. Upon his default, she was granted this relief. final decree divorce entered October 1962. separation suit prayed be allowed accept acquets gains with benefit inventory. However, taking advantage privilege by Art. 2410 Civil Code,1 formally renounced September 18, 1961. As consequence, received neither distribution nor settlement upon dissolution marriage. This served exonerate 'debts contracted marriage.' earned $4,200 teacher 1955 1956. From these earnings withheld. enjoyed taxable five question. All both spouses period income. 4 had little knowledge finances. She rarely knew balance family bank account. possessed withdrawal account, occasionally exercised it. Her charge couple's financial affairs did usually consult about them. aware fiscal irresponsibilities part. questioned him each year returns. returns required, but relied assurances he filing timely paying due. signed no return herself assumed name her. 1960 learned that, fact, ever been filed 1955—1959. based sought collect inherited mother 1964 immediately transferred, consideration 6 redetermination Tax Judge Forrester held an immediate ownership responsible share. He also ruled liability affected renunciation. v. Commissioner, 51 T.C. 641 (1969). On appeal, Fifth Circuit reversed, holding avoided any Revenue, (CA5 1970).2 Simpson dissented basis Forrester's F.2d, at 7. 8 Throughout calendar 1959—1961 Angello, who then Sparacio, Jack Community Sparacios those years, 1965 District Director assessments them taxes, penalties, interest, notice lien, addressed levy Metropolitan Life Insurance Company, which policy outstanding Sparacio's life. insured died March 1966 (for amount resulting imputing Sparacio community's question) attached proceeds policy. widow, named beneficiary, recover proceeds. United States intervened assert protect its lien. case removed court. paid into registry dismissed case. 9 Each side moved summary judgment. Christenberry Government's motion denied Angello's. Despite absence formal Angello 2410, Government contend accepted benefits community. Court Appeals relying same panel's decision Ins. Co., 1970). again dissented. 10 We certiorari cases, 400 1008, 564, 27 621 (1971), single our Rule 23(5). II 11 Sections 1954 Code, 3, have all their predecessors Act 1917,3 impose 'of every individual.' statutes, specified phrase includes. 12 Forty ago occasion consider face various laws 210 211 1926. wife, residents 1927 consisting salary amounts real personal separate reported Roberts, speaking unanimous (two Justices participating) upholding treatment, said: 13 'These sections lay net individual. goes farther, furnishes other standard definition constitutes individual's use word 'of' denotes ownership. It would strained construction, which, further Congress, should impute broader significance phrase.' Poe Seaborn, 282 101, 109, 58, 75 L.Ed. 239 (1930). 14 thus emphasized looked concluded Washington 'a property, husband; including salaries wages either both.' Id., 111, S.Ct., 59. noted contrast, earlier Robbins, 269 315, 46 148, 70 285 (1926), opposite result reached California law. But: 15 'In Robbins we found California, construed own courts, gave mere expectancy rights life so complete fact owner.' U.S., 116, 61. 16 companion came conclusion, it respect Arizona, Texas, Goodell Koch, 118, 62, 247 (1930); Hopkins Bacon, 122, 249 Bender Pfaff, 127, 64, 252 17 'If test be, is, income, probably strongest presented us, favor wife's income.' 131, 64. 18 reviewed relevant statutes power disposition spouse. while manager marital partnership, limitations wrongful over are more stringent than many States. concluded: 19 'Inasmuch, therefore, hold entitled returns, treating 'individual' words used 210(a) 211(a) 1926.' 132, 65. 20 Two months later arrived conclusion 1928 Act, conceding effectiveness, respect, amendments decision. Malcolm, 792, 184, 714 (1931). Significantly, there answered affirmative, citing following certified question: 21 'Has section 161(a) such report pay income?' 794, 184. 22 affirmative answer question phrased terms 'should,' 'may,' clearly indicates obligation, merely right, 23 courts Malcolm consistently required only half. Gilmore States, 290 942, 154 Ct.Cl. 365 (1961), rev'd grounds, 372 39, 83 623, 570 (1963); Van Antwerp 92 871 (CA9 1937); Simmons Cullen, 197 F.Supp. 179 (ND Cal. 1961); Dillin 56 228 (1971); Kimes 55 774 Hill 32 254 (1959); Hunt (1954); Freundlich T.C.Memo. 1955—177; Cavanagh 42 B.T.A. 1037, 1044 (1940), aff'd, 125 366 1942). There holdings apparent effect taxpayers. Hyman, 135 49, 50 (1943); Saenger 69 633 (1934); Smith v.Donnelly, 65 415 (ED La. 1946). See Henderson's Estate 155 310 1946), Gonzalez National Surety Corp., 266 667, 669 1959). 24 Thus, follows Blair Intrnal 300 5, 11—14, 57 330, 332—334, 81 465 (1937). Hoeper Commission, 284 206, 52 120, 76 248 determination ownership, controls. 'The creates legal interests statute determines when how shall taxed.' Burnet Harmel, 287 103, 110, 53 74, 77, 77 199 (1932); Morgan 309 78, 80—81, 60 424, 425—426, 84 585 (1940); Helvering Stuart, 317 154, 162, 63 140, 144, 87 (1942); Harmon, 323 44, 50—51, 106, 89 (1944) (Douglas, J., dissenting); see Bosch, 387 456, 1776, 886 (1967). dates cited indicate principles long established III 25 appear foreclose cases. Nevertheless, because respondents stress evanescent nature review pertinent decisions perhaps order. Every marriage 'superinduces partnership gains, if stipulation contrary.' La.Civ.Code Ann., 2399 (1971). 'This consists profits effects administration enjoyment, produce reciprocal industry labor estate may acquire marriage, donations jointly both, purchase, similar way, even although purchase time alone attended to, person purchase. *' 2402. debts 'enter must acquitted out common fund *.' 2403. head master gains; administers effects, disposes revenues produce, alienate onerous title, consent permission wife.' Also 'he dispose movable gratuitous particular persons.' 2404. article, denies conveyance, 'by title,' immovables, whole quota movables, unless children; sold disposed fraud action heirs. At 'all reciprocally possess, presumed 2405. dissolution, compose divided portions between heirs 2406. 'It understood partition equally share dissolution.' 2409. Then assigns 'exonerate themselves renouncing gains.' 2410. And 'who renounces, loses sort gains' except 'she takes back dotal extradotal.' 2411. described forcefully stated interest. Phillips Phillips, 160 813, 825—826, 107 So. 584, 588 28 marriage; transmitted consequence title moment acquired jointly, though loose expressions, appearing some opinions rendered court, expectancy, residuary until dissolved liquidated. But contrary provisions rule announced error first committed Later, Succession Wiener, 203 649, So.2d 475 (1943), inheritance after referring Arts. 2402 'That shares, thereto vesting very instant acquired, well settled state. 30 keeping Supreme supra, recognized likewise owner 657 662, So.2d, 477 479. 31 After reviewing joint tenancy entirety known law, observed: situation entirely different, here civil prevails, theory acquisition efforts, labor, industry, economy, sacrifices wife; station just much agency acquiring husband. do rest gratuity great dignity. half-partner acquisitions 33 true weaving harmonious commercial around intimate sacred relationship, framers codifiers saw fit, wisdom, place way affect status thereof. managing partner charged alienation deemed best qualified act.' 665—667, 480—481. 34 outlined detail protections afforded 35 obvious, does spring fiction gift act generosity part but, instead, express contract substantial difference therein ordinary member limited control management whose has, agreement, entrusted partner. placed fixed convention contract.' 669, 481—482. 36 agent powers serve defeat wife. 37 repeatedly expression Fidelity & Guaranty Co. Green, 227, 232—233, 328, 330 (1968); Gebbia City 409, 415—416, 187 423, 425 (1966); Azar Azar, 941, 946, 120 485, 487 (1960); Messersmith Messersmith, 229 495, 507, 86 169, 173 (1956); Dixon Dixon's Executors, 188 (1832). 38 Wiener estate's litigation. Fernandez 326 340, 66 178, 90 116 (1945). inclusion decedent's gross entire upheld purposes excise tax. Chief Stone respective when, language, spoke death: 39 'As seen, death operates transfer will. terminates expansive sometimes profitable share, brings full exclusive possession, enjoyment. cessation extensive never 'owned,' establishment new always hers, furnish appropriate occasions imposition 40 'Similarly, ends, passes appointees. More this, death, ending liberates restrictions redistribution brought subject sense 'vested' began. 355—356, 186. 41 Thus seem claims advanced respondents. IV concession expectancy,4 in, of, income,5 take position somehow insufficient make computed 43 said renounce existed substantive; debt; really entity, owns property; Seaborn concerned split obligation do. dominion nonexistent Louisiana; sees fit; account mismanagement, enriches expense fraud; terminate separation, showing mismanagement threatens estate; imposed contrasted consensual; obtain information necessary funds tax; authorizes taxing arguments, 103—105, 119, 123, 128, 63, unavailing there, 111—113, 59—60. persuade us here. Specifically, renounce, Article confort wife-taxpayer. aptly expressed it, T.C., 646, 'came liabilities annual attached.' Further, '(t)his repudiate misconstrued indication owned denied; have, revoke possession. W. deFuniak, Principles Property 218, p. (1943). 44 results urged might follow, course, connection collection controlled bind collector. Federal levy. 45 Section 6321 imposes lien 'upon belonging to' 6331(a) What 6334(a). 6334(c) provides, 'Notwithstanding specifically subsection (a).' language specific clear room automatic exemption happens Bess, 357 51, 56—57, 78 1054, 1057—1058, 1135 (1958); Shambaugh Scofield, 132 345 1942); Heffron, 158 (CA9), cert. denied, 331 831, 67 1510, 1845 (1947); Treas.Reg. 301.6334—1(c). Birch Dobt, Ariz.App. 228, 407 P.2d 417 (1965). exempts premarital Overman, 424 1142, 1145 1970); re Ackerman, 1148 different. conceded 'hard' exceedingly unfortunate women taxpayers.6 mother, ripened beneficiary deceased insurance situation, ascertain details clear. paid. Returns filed. 'fault,' fault lies four taxpayers flows system. If wives prevail worlds. 47 remedy legislation. An example Pub.L. 91—679 January 12, 1971, Stat. 2063, adding (e) 6013 sentence 6653(b). afford relief innocent spouse, party return, omitted fraudulent underpayment. Relief kind respondents' situation. 48 judgment 49 ordered. Reversed. 'Both being able Accord, Texas Ramos 429 1939, 12; 1938, 452, 453; 1936, 1653; 1934, 684; 1932, 174; 1928, 795, 796; 1926, 211, 21; 1924, 264, 265; 4, 1923, 1507; 1921, 233; 1918, 1062; 1917, 201, 300, 303. Brief 2. 2, 9. Of Baron Rolfe observed, hard 'are apt introduce bad law.' Winterbottom Wright, 152 Eng.Rep. 402, (1842).

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