@NCperson wrote:
the only point I was trying to make with the 'legal' question is why doesn't the income tax responsibility follow the legal ownership.....
The federal tax laws are promulgated by Congress. For example, you could also inquire as to why the donee is not responsible for paying any gift tax due (on a gift) since the donee has legal ownership of the funds (or property) that was gifted by the donor.
