- 5 -
in the development of the taxpayer's business. Welch v.
Helvering, supra.
Petitioner did not adequately explain why the payments were
appropriate or helpful to his business, or how he expected them
to produce commensurate benefits for his business, and we fail to
see how such payments could be considered normal, usual, or
customary in the operation of a piano service and sales business.
Because petitioners have failed to establish that the payments
were ordinary and necessary business expenses within the meaning
of section 162(a), respondent's adjustment disallowing the
business deduction for each year is sustained.2
2. Self-Employment Tax
In addition to other taxes, section 1401 imposes a tax on
the self-employment income of an individual. With the exception
of circumstances not present here, section 1402(b) defines self-
employment income as net earnings from self-employment derived by
an individual. Sec. 1402(b)(2). The term "net earnings from
2In the computation of the deficiencies, respondent allowed
the payments in dispute as charitable contribution deductions
pursuant to sec. 170. The provisions of sec. 162(b) and sec.
1.162-15(a), Income Tax Regs. (which deny deductions under sec.
162(a) for contributions deductible under sec. 170), however,
were not relied upon by respondent in her notice of deficiency or
in her brief. Consequently, we did not directly consider the
applicability of those sections. Other than respondent's
recharacterization, the record is insufficient to allow for an
independent determination of whether the payments in dispute
constituted charitable contributions within the meaning of secs.
162(b) and 170. For a discussion on this point, see Marquis v.
Commissioner, 49 T.C. 695 (1968).
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