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deduct certain trade or business expenses for 1995 on Schedule C,
Profit or Loss From Business, in excess of amounts allowed by
respondent; and (3) whether petitioner is liable for the addition
to tax under section 6651(a)(1) for failing to file his Federal
income tax return for 1995 timely.1 Petitioner’s liability for
additional self-employment tax is a computational issue dependent
on the Court’s holding on the issues described.
Some of the facts were stipulated, and those facts, with the
annexed exhibits, are so found and are incorporated herein by
reference. At the time the petition was filed, petitioner's
legal residence was Cincinnati, Ohio. Petitioner was married
during the year at issue.
Petitioner is an attorney engaged in the practice of law in
Cincinnati. He began his law practice as a sole proprietorship.
In October 1994, he incorporated his practice in Ohio under that
State’s legal professional association statute. However, no
valid corporate return was filed on behalf of petitioner’s
professional corporation for 1995.2
1 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.
2 Petitioner mailed a Form 1120, U.S. Corporation Income
Tax Return, to the Internal Revenue Service on behalf of his
professional corporation for 1995. That return reflected no
taxes due; however, the return was returned to petitioner as
being incomplete. No further attempt was made on behalf of the
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