Kenneth O. and April C. Butler - Page 6




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          (1970).  The Fifth Amendment privilege applies when the                     
          possibility of self-incrimination is a real danger, not a remote            
          and speculative possibility.  See Zicarelli v. New Jersey State             
          Commn. of Investigation, 406 U.S. 472, 478 (1972); Stubbs v.                
          Commissioner, 797 F.2d 936, 938 (11th Cir. 1986); Heitman v.                
          United States, 753 F.2d 33, 34-35 (6th Cir. 1984); Davis v.                 
          United States, 742 F.2d 171, 172 (5th Cir. 1984); Moore v.                  
          Commissioner, 722 F.2d 193, 195 (5th Cir. 1984), affg. T.C. Memo.           
          1983-20; Steinbrecher v. Commissioner, 712 F.2d 195, 197 (5th               
          Cir. 1983), affg. per curiam T.C. Memo. 1983-12; McCoy v.                   
          Commissioner, 696 F.2d 1234, 1236 (9th Cir. 1983), affg. 76 T.C.            
          1027 (1981); Edwards v. Commissioner, 680 F.2d 1268, 1270 (9th              
          Cir. 1982).  At trial, respondent stated that petitioner was not            
          under criminal tax investigation.  Accordingly, petitioners'                
          claim of Fifth Amendment protection is misplaced because they               
          merely claimed the privilege without showing a danger of self-              
          incrimination.                                                              
               Petitioners admit that for taxable years 1990, 1991, 1992,             
          1993, 1994, and 1995 they resided in Texas, a community property            
          State.  For taxable years 1988 and 1989, petitioner testified               
          that he and his wife lived and worked in Washington State and               
          Oregon.  Petitioners' time living in Washington State is                    
          irrelevant to respondent's determinations, as it is also a                  
          community property State.  In any event, petitioners have not               





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