Sheriel L. Sexcius - Page 5

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                    Note that the referenced form [Form 1040,                         
               December 31, 1990], which sets forth my circumstances                  
               and facts, does not take into account the sum of $1,932                
               reported by the District of Columbia Government on                     
               Form 1099-G.  The omission is deliberate.  The sum in                  
               question constitutes court-awarded damages for                         
               defamation of character, not self-employment income.                   
               The rule is that damages so awarded are not includible                 
               in gross income.                                                       
          The petition in this case was filed March 15, 1995.  Although               
          petitioner was advised by earlier opinions of the Court of the              
          lack of merit in her positions with respect to losses from her              
          tutoring activity and of the necessity of producing records to              
          substantiate deductions, she made no attempt to comply with the             
          applicable rules.  These proceedings have been instituted or                
          maintained by petitioner primarily for delay.                               
                                       OPINION                                        
               By the time of trial in this case, petitioner had lost four            
          consecutive cases in this Court with respect to her tutoring and            
          counseling activity.  In those cases, deductions were denied                
          because she had failed to establish that the activity was                   
          conducted with an actual and honest profit objective and because            
          she failed to maintain adequate records of her deductible                   
          expenses.  In one of those cases, the Court had imposed an award            
          under section 6673 against petitioner because of her persistence            
          in litigating the same issue previously decided against her                 
          without any change in facts or applicable law.                              







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