- 6 -
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
5(...continued)
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
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011