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Howard W. Munchnick, for petitioners.
John J. Sweeney, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
HALPERN, Judge: By notice of deficiency dated May 21, 1999,
respondent determined a deficiency in petitioners’ Federal income
tax for 1997 in the amount of $68,716. The adjustment giving
rise to that deficiency is respondent’s determination that
petitioners are liable for the alternative minimum tax. After
concessions, the only issue remaining for decision is whether
petitioners may treat certain legal fees and related expenses
(the legal fees) as reimbursed employee business expenses
deductible from gross income pursuant to section 62(a)(2)(A)
rather than as miscellaneous itemized deductions, which are not
allowed as deductions in computing alternative minimum taxable
income subject to the alternative minimum tax. We hold that they
may not. Our reasons follow.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the year at issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
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