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202, 81 Stat. 602, currently codified at 29 U.S.C. secs.
621-634 (1994).
Arguments similar to petitioners' in the instant case
were fully considered and rejected by this Court in Kenseth
v. Commissioner, 114 T.C. 399 (2000), and by the Court of
Appeals for the Ninth Circuit in Sinyard v. Commissioner,
supra, Benci-Woodward v. Commissioner, supra, and Coady v.
Commissioner, supra. We have no reason to reconsider the
issue in this case. Accordingly, we sustain respondent's
determination that the judgment is fully includable in
petitioners' gross income and cannot be reduced by the
amount retained by petitioner's attorney under the retainer
agreement.
Whether the Alternative Minimum Tax Is Unconstitutional
In the notice of deficiency, respondent treated the
attorneys' fees that petitioner paid in connection with
his superior court action as a "miscellaneous itemized
deduction", as defined by section 67(b). In the case of
an individual, a miscellaneous itemized deduction is not
deductible in computing alternative minimum taxable income.
See sec. 56(b)(1)(A)(i). In petitioners' case, this has
the effect of causing the tentative minimum tax computed
under section 55(b) to exceed petitioners' regular tax and,
thus, causes petitioners to be liable for the alternative
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