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beneficial enjoyment of the corpus or income are not vested in
the grantor or certain other persons (sec. 674), and (5) certain
administrative powers are not exercisable by the grantor or a
nonadverse party (sec. 675).
(4) Discusssion
The facts establish that one or both of the J. Shirleys
performed services for which payment was made and neither
reported any compensation, either directly or indirectly (e.g, by
way of salary), for performing such services. Clearly, in prior
years, they had treated one or both of themselves as the true
earner of income from computer consulting. As evidence of that,
we have deemed admissions that they treated such income as self-
employment income. Self-employment income is generally
synonymous with the net earnings derived from a trade or
business, or profession, carried on as a sole proprietor or as a
partner. See sec. 1.1401-1(c), Income Tax Regs.; Durando v.
United States, 70 F.3d 548, 551 (9th Cir. 1995) (self-employment
tax provisions explicitly encompass income derived from a sole
proprietorship or a partnership). The J. Shirleys have proved no
fact to contradict the inference that they continued that sole-
proprietorship (or partnership) during 1995, the year in issue.
They exercised control over Alexion Trust, and they have proved
no fact to indicate that their control was less than complete.
They have failed to prove that they did not retain sufficient
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