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schedules was for petitioner’s return preparation business. This
Schedule C reported $550 of gross receipts and a net loss of $20.
The other Schedule C listed the proprietor as “D. Stussy, as
successor per IRC section 691(b)” and reported that the
proprietor’s principal business activity was “Artist”. This
Schedule C reported no gross receipts and one expense. This
expense, in the amount of $4,665, was Federal and State income
tax deficiency interest paid as to petitioner’s 1992 through 1995
personal income tax returns. Petitioner’s income tax liabilities
for 1992, 1993, and 1994 were determined by respondent on the
basis of this Court’s memorandum opinion in Stussy v.
Commissioner, T.C. Memo. 1997-293.
OPINION
1. Burden of Proof
The parties dispute who bears the burden of proof. We need
not and do not decide that issue. The record is sufficient for
us to decide this case on its merits.
2. Interest
Petitioner claims as a sole proprietorship expense a
deduction for interest that he paid with respect to his personal
Federal and State income taxes. Petitioner recognizes that the
Court of Appeals for the Ninth Circuit, the court to which this
case is appealable, held in Redlark v. Commissioner, 141 F.3d 936
(9th Cir. 1998), revg. and remanding 106 T.C. 31 (1996), that
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