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adjustment concerning self-employment tax. Petitioners do not
object to the concession of self-employment tax adjustment, but
to the corresponding elimination of the deduction for one-half
the conceded self-employment tax adjustment. Respondent objects
to petitioners’ motion, solely on the ground that the period for
assessment was suspended under section 6503(a) at the time of the
determination. There is no dispute about any material fact, and
this matter is ripe for summary judgment.
Background
Petitioners’ joint 1995 Federal income tax return was filed
October 15, 1996. On April 18, 1999, and again on October 14,
1999, petitioners executed Forms 872, Consent to Extend the Time
to Assess Tax, agreeing to extend the assessment period to April
30, 2000, and October 31, 2000, respectively.
Respondent issued a Notice of Deficiency to petitioners on
October 6, 2000, determining a $2,075 deficiency in income tax
and an $8,123 deficiency in self-employment tax for petitioners’
1995 taxable year. The self-employment tax deficiency was based
on respondent’s determination that petitioners received $83,514
of self-employment income, rather than $6,694 of self-employment
income as reported on petitioners’ 1995 return. Because of the
increase in self-employment tax liability, respondent
correspondingly determined that petitioners were entitled to a
deduction equal to one-half of the self-employment tax or $4,062.
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