Daniel L. Fa'asamala and Yvette S. Fa'asamala - Page 2

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          wages are income to them and whether they are entitled to a                 
          deduction or credit for the “marriage penalty”.                             
                                  FINDINGS OF FACT2                                   
               Petitioners resided in Oceanside, California, at the time              
          their petition was filed.  Neither petitioner has specialized               
          knowledge of the law or taxation matters.  Both petitioners were            
          educated through the 12th grade.  Petitioners were married in               
          1990, and from that time forward began filing joint Federal                 
          income tax returns.  They noticed that their marital status                 
          resulted in the payment of more Federal income tax, collectively,           
          than they had experienced when they were single and filed                   
          separately.  This paradoxical situation upset petitioners, and              
          they set out to understand the taxing statutes.  They attended              
          several lectures for which they had to pay fees, and they studied           
          the Internal Revenue Code and related materials.  Some of the               
          lecturers were former Internal Revenue Service employees, and               
          petitioners believed the other lecturers to be expert or                    
          knowledgeable in the field of taxation.                                     
               Petitioners reached the conclusion that they were entitled             
          to a rebate of the extra tax they paid due to being married and             
          that their wages are not taxable.  Petitioners’ 1995 joint                  
          Federal income tax return was in all pertinent respects complete            
          in that it advised respondent of the information necessary to               

               2 The parties’ stipulation of facts and the information in             
          the attached exhibits are incorporated by this reference.                   




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