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that income from the tax certificates is taxable to petitioner,
citing Hernandez v. Commissioner, supra.
As to tax year 1995, respondent disallowed deductions for
investment interest and other expenses on Schedule A, as
petitioner failed to substantiate these deductions. For tax year
1996, respondent determined that petitioner’s filing status
should be single, asserting that petitioner did not qualify for
head-of-household filing status.
Respondent determined that petitioner was liable for
additions to tax under section 6651(a)(1) for tax years 1993,
1995, and 1996. Respondent also determined that petitioner was
liable for an addition to tax under section 6654 for tax year
1993, and accuracy-related penalties under section 6662(a) for
tax years 1995, 1996, and 1997.
Petitioner disputes all of respondent’s determinations.
Petitioner argues that interest from the tax certificates is not
taxable, and, even if it is taxable, the interest income belongs
to his clients.
Discussion
1. Tax Certificates
Petitioner is not a stranger to this Court. In both
Hernandez v. Commissioner, T.C. Memo. 1998-46 (regarding tax
years 1990, 1991, and 1992) (Hernandez I) and Hernandez v.
Commissioner, T.C. Summary Opinion 2001-9 (regarding tax year
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