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Respondent determined deficiencies in petitioner's Federal
income taxes for the taxable years 1994 and 1995 in the amounts
of $2,855 and $2,893, respectively, as well an accuracy-related
penalty under section 6662(a) for the taxable year 1994 in the
amount of $571. After concessions by the parties,2 the issue for
decision is whether section 469(i) is unconstitutional.3
FINDINGS OF FACT
Some of the facts have been stipulated, and they are so
found. Petitioner resided in Omaha, Nebraska, at the time that
his petition was filed with the Court.
During the years in issue, petitioner was employed as a
telemarketer and received wages in the amount of $27,787 for 1994
and $31,859 for 1995. Petitioner also operated an automobile
rental business. For the years in issue, the average period of
customer use for petitioner's automobiles exceeded 30 days. On
his 1994 and 1995 returns, petitioner claimed Schedule C losses
2 Respondent concedes that petitioner is not liable for the
accuracy-related penalty under sec. 6662(a) for 1994. The
parties agree that computation of the taxable portion of
petitioner's Social Security retirement benefits is a mechanical
matter the resolution of which is dependent on the disposition of
the issue for decision.
3 The parties also disagree as to whether certain Schedule
C deductions have been substantiated. However, given our holding
on the constitutional issue, we need not consider whether
petitioner has substantiated these deductions.
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