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owned by Lloyd L. Barber (petitioner). Resolution of this issue
depends upon whether a timely election on Form 2553 was filed on
behalf of the corporation.
All section references are to the Internal Revenue Code in
effect for the years under consideration. All Rule references are
to the Tax Court Rules of Practice and Procedure.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The
stipulation of facts and the attached exhibits are incorporated
herein by this reference.
At the time petitioners filed their petition, they resided in
Anchorage, Alaska.
Legal Search, Inc. (Legal Search) was incorporated in Alaska
on December 2, 1993. It performed legal research and prepared
legal documents through petitioner, a self-taught paralegal.
Respondent's records do not reflect that an election was ever
made by Legal Search on Form 2553 for treatment as a small business
corporation. (A May 18, 1999, Certification of Lack of Record to
this effect was secured from the Custodian of Records for the Ogden
Service Center and is part of the record.)
On April 17, 1996, the Internal Revenue Service (IRS) received
petitioners' Federal income tax return, Form 1040, for 1995. On
the return, petitioners reported an $8,613 pass-through loss from
Legal Search, which petitioners claim is an S corporation. Because
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