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Ms. Weiler’s income (instead of Mr. Weiler’s income).
Accordingly, respondent disallowed the Schedule C loss to Mr.
Weiler and allowed in full to Ms. Weiler the expenses claimed on
the Schedule C (altogether, the $14,065 adjustment). The $14,065
adjustment is attributable and allocable to Ms. Weiler.
Respondent concedes, and we agree, that Mr. Weiler is relieved
from liability for tax and penalties attributable or allocable to
the $14,065 adjustment. Sec. 6015(b) and (c).
We note that the term “tax” in section 6015(b)(1) and (2) is
not limited to any particular type of tax or portion of the
Internal Revenue Code; however, to be an “understatement” of tax
it has to be a tax required to be shown on the tax return. Secs.
6015(b)(3), 6662(d)(2)(A). Alternative minimum tax and self-
employment tax are reported on Form 1040, U.S. Individual Income
Tax Return.
Additionally, section 6015(c) provides relief from liability
for a “deficiency”. Alternative minimum tax and self-employment
tax are income taxes imposed by subtitle A. Secs. 55, 1401.
Accordingly, alternative minimum tax and self-employment tax are
types of tax included in the definition of a deficiency. Sec.
5(...continued)
adjustment determined in the notice of deficiency. Petitioners
agree that this $1,250 is not in dispute. Ms. Weiler does not
dispute that she earned the $1,250 of gross receipts reported on
the 1995 return in addition to the $14,065 listed on the Form
1099 from Sporthouse.
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