James E. Anderson and Cheryl J. Latos - Page 7

                                        - 7 -                                         
          Discussion                                                                  
               Petitioners argue they are not liable for self-employment              
          tax on the ground that petitioner was an employee of the boat               
          owners or operators when he worked as a crew member or captain in           
          1997.  Respondent argues petitioner was self-employed.                      
               Inasmuch as respondent has determined that petitioner was              
          self-employed and that petitioners are liable for self-employment           
          tax under section 1401, and petitioners have filed a timely                 
          petition with this Court, we have jurisdiction of this case.  See           
          secs. 6211(a), 6213(a); Philbin v. Commissioner, 26 T.C. 1159               
          (1956); Anderson v. Commissioner, T.C. Memo. 2003-112; sec.                 
          1.1401-1(a), Income Tax Regs.                                               
               It seems likely respondent’s examination of petitioners’               
          1997 return and amended 1997 return began after July 22, 1998,              
          and that section 7491(a) would apply to the case at hand.  The              
          parties do not address whether the burden of proof on the                   
          deficiency at issue should shift to respondent under section                
          7491(a).  We need not decide that question because our decision             
          on petitioners’ 1997 self-employment tax liability does not                 
          depend on the burden of proof.                                              
               Section 1401 imposes a tax on self-employment income                   
          attributable to a taxpayer from any trade or business carried on            


               7(...continued)                                                        
          petitioners more 1997 Schedule C expense deductions than they had           
          claimed on their original return.                                           




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