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minimum tax in the amount of the excess. See sec. 55(a).
See generally Benci-Woodward v. Commissioner, supra at 994
(holding that legal expenses are classified as
miscellaneous itemized deductions and, as such, are not
allowed as deductions for purposes of computing alternative
minimum tax liability).
In the notice of deficiency, respondent determined
that petitioners are liable for alternative minimum tax of
$52,303. This was based upon the treatment of attorneys'
fees of $194,595 as an additional miscellaneous itemized
deduction. As mentioned above, the parties agree that
the attorneys' fees, to be treated as an additional
miscellaneous itemized deduction, are $129,698.70, rather
than $194,595.
Petitioners do not take issue with respondent's
computation of the amount of alternative minimum tax in
this case. They argue:
THE FAILURE OF THE ALTERNATIVE MINIMUM
TAX TO ALLOW A DEDUCTION FOR ATTORNEYS
FEES AND COSTS, WHICH RESULTS IN A
DOUBLE TAXATION OF THE SAME INCOME TO
PETITIONER AND HIS ATTORNEYS, [IS] A
VIOLATION OF THE CONSTITUTIONAL RIGHTS
OF PETITIONER IN THAT IT IS A TAKING
WITHOUT DUE PROCESS OF LAW AND A DENIAL
OF THE EQUAL PROTECTION OF THE LAW IN
VIOLATION OF THE 5TH AND 14TH AMENDMENT
[sic] TO THE FEDERAL CONSTITUTION.
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