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In response, the Court issued an Order, dated March 30, 1995, in
which we characterized petitioner's arguments as frivolous and
admonished petitioner that if he continued to advance such
frivolous legal arguments, we would consider imposing a penalty
under section 6673. At the trial of this case, on June 10, 1996,
petitioner continued the same tax protester arguments he had been
warned to abandon.
In the notice of deficiency, respondent determined that
petitioner was liable for tax on all the wage income he received
from the City and on 50 percent of the wage income Mrs. Simmons
received from the hospital. Respondent also determined additions
to tax under section 6651(f) for the years in issue. In
respondent's posttrial brief, respondent conceded that petitioner's
and Mrs. Simmons' wages were community income, and thus petitioner
was liable for tax on only 50 percent of the income he received
from the City, and 50 percent of the income Mrs. Simmons received
from the hospital.
OPINION
Issue 1. Unreported Income
The uncontroverted evidence in this case establishes that
petitioner and Mrs. Simmons had unreported wage income during each
of the years under consideration as follows:
Petitioner Mrs. Simmons
1990 $28,515 $ 9,330
1991 28,481 13,081
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