Wayne and June Ellen Hairston - Page 10

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               Mr. Hairston: No. I am not opposed to the -- to that, as a             
                              religious issue, no.                                    
                                   We were advised to -- by our accountant,           
                              to file for an exemption with the State,                
                              providing the State would allow it.  And we             
                              asked the State to allow it, which they did.            
               Although petitioner signed an exemption application stating            
          that he is opposed to public insurance because of his religious             
          principles, the Court finds petitioner's trial testimony to be              
          more compelling.  The application for exemption contained                   
          numerous significant mistakes, including the date that petitioner           
          was ordained and the religious body that ordained petitioner.  It           
          is obvious that petitioner did not carefully review the                     
          application.  In view of the significant mistakes made on the               
          application, it is possible that petitioner did not even read the           
          application, including the statement certifying that the                    
          applicant is opposed to public insurance, prior to signing the              
          Form 4361.                                                                  
               We hold that petitioner has failed to prove that he is                 
          opposed to public insurance as is required by section 1402(e)(1)            
          in order to qualify for exemption from the self-employment tax.             
          Petitioner is therefore liable for self-employment taxes for the            
          taxable years 1988, 1989, and 1990.4                                        




          4 We note that for the taxable year 1990, petitioners are                   
          entitled to deduct from gross income one-half of their self-                
          employment tax liability pursuant to sec. 164(f).                           




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