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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.
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