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underpayment for 1991 was not due to fraud, petitioners are
liable for the accuracy-related penalty under section 6662.
Some of the facts have been stipulated and are so found.
The stipulations of fact and attached exhibits are incorporated
herein by this reference. Petitioners resided in Round Rock,
Texas, on the date the petition was filed in this case.
Since the time they were married in 1962 and until the years
here in issue, petitioners had filed joint Federal income tax
returns and paid tax on their community income. As a result of
conversations with friends and their own limited research in
constitutional and tax law, petitioners concluded that they were
not citizens of the United States and were not therefore subject
to the tax laws applicable to United States citizens. Relying
upon this conclusion, petitioners each filed Forms 1040-NR as
non-resident aliens for the tax years at issue, since Form 1040-
NR requires the filing of separate returns for married couples.
Separate deficiency notices were issued by respondent to each
petitioner.
The first issue for decision is whether petitioners failed
to report income in an amount determined by respondent.
The determinations of respondent in the statutory notice of
deficiency are presumed to be correct, and petitioners bear the
burden of proving that respondent erred in her determinations.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
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