James E. Anderson and Cheryl J. Latos - Page 6

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               During 2000 and 2001, petitioners and respondent agreed to             
          extend the period of limitations on assessment of petitioners’              
          1997 income tax liability to March 31, 2002, most likely to give            
          respondent time to issue a technical advice memorandum (Tech.               
          Adv. Mem. 2002-11-005 (Mar. 15, 2002)) relating to facts                    
          substantially identical to those of this case.6                             
               On February 12, 2002, respondent issued a statutory notice             
          of deficiency to petitioners for 1997; respondent determined                
          petitioners were liable for self-employment tax of $5,764 for               
          compensation petitioner received from his fishing activities;               
          respondent also reclassified $2,031 of petitioners’ health                  
          insurance premiums and all $4,438 of petitioners’ unreimbursed              
          employee business expenses as business expenses reportable on               
          Schedule C.7                                                                

          their original 1997 return.  Petitioners argued that the boat               
          owners’ failure to withhold 1996 and 1997 Federal income tax from           
          petitioner’s wages relieved them from liability for the income              
          tax.  The Court, among other things, upheld respondent’s                    
          determination to collect by levy the income tax liability shown             
          on their 1997 return.  See also Anderson v. Commissioner, T.C.              
          Memo. 2000-311.                                                             
               6The technical advice memorandum generally reflected                   
          respondent’s position in this case.  Technical advice memoranda             
          are a type of private letter ruling that is not to be cited as              
          precedent unless regulations so provide.  Sec. 6110(k)(3).  No              
          regulations so provide here.                                                
               7In the statutory notice, respondent determined petitioners            
          are liable for self-employment tax of $6,605, which was                     
          thereafter reduced to $5,764 because respondent allowed                     

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