Poe v. Seaborn

Mr. and Mrs. Seaborn (plaintiffs), residents of community-property state Washington, each reported half of Mr. Seaborn's salary and half the proceeds from real estate held in his name on separate federal tax returns, lowering their combined tax bracket. The tax commissioner (defendant) issued a deficiency notice, asserting Mr. Seaborn should have reported the full salary as his own individual income; the district court ruled for the Seaborns.