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On brief, respondent contends that petitioners are liable
for self-employment tax. Respondent's brief is contrary to the
notices of deficiency sent to petitioners. In the notices of
deficiency, only Mr. Yoshihara is determined to have liability
for self-employment tax under section 1401. On the basis of the
record and sections 1401 and 1402(a)(5), we find that all the
self-employment tax liability for 1992, 1993, 1994, and 1995 is
attributable to the business managed and controlled by Mr.
Yoshihara, and that he is liable for self-employment tax during
the years in issue.
Issue 3. Failure To Timely File Tax Return or To Pay Tax
Petitioners did not file tax returns for any of the years in
issue. Respondent determined that the addition to tax for
failure to timely file a tax return was applicable for each of
the years in issue. An income tax return must be filed by all
individuals receiving gross income in excess of certain minimum
amounts. See sec. 6012; sec. 1.6012-1(a), Income Tax Regs. For
1992, 1993, 1994, and 1995, petitioners' gross income, as defined
in section 61(a), was well in excess of the minimum amounts
specified in section 6012. Therefore, petitioners were required
to file Federal income tax returns for 1992, 1993, 1994, and
1995. See secs. 6011, 6012(a)(1)(A), 7701(a)(1); sec. 1.6012-
1(a), Income Tax Regs.
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