Submillimeter continuum maps at 800 mu m of the embedded source IRAS 0
4368+2557 in L1527 in Taurus show that there are two sources separated
by 20 '', or 2800 AU. The secondary source is between 2 and 3 times l
ess luminous than the primary source if both sources have similar spec
tral energy distributions. Large-scale (CO)-O-18 J = 1 --> 0 emission
shows the sources to be embedded in a single dense core, and observati
ons of (CO)-O-18 and (CO)-O-17 show the sources to be associated with
a compact region of high-density gas. Three transitions of (CO)-O-18 s
how a velocity gradient between the two sources. On the smallest size
scale, the (CO)-O-18 J = 3 --> 2 emission has a velocity gradient of 3
-7 km s(-1) pc(-1). The proximity of the sources in both space and vel
ocity suggest that they are a very young protobinary system. The estim
ated age of the primary source, 5 x 10(3) yr, is much less than the es
timated orbital period, 1.4 x 10(5) yr. The separation and young age o
f the system indicates that it formed through fragmentation of the den
se core during collapse.