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“qualified offer”, as defined by section 7430(g), which
states: “The taxpayers as their qualified offer agrees
[sic] to establish as the taxpayer’s [sic] liability
(determined without regard to interest) by agreeing to pay
to the United States $0.” Petitioners mailed the “qualified
offer” more than 30 days before the case was called from the
trial calendar. See sec. 301.7430-7(c)(7), Proced. & Admin.
Regs. When the case was subsequently called from the trial
calendar, the parties filed a stipulation of settlement
in which they agreed, as
a basis of settlement * * * that the issue
relating to the applicability of self-employment
tax on these rental payments is the same as the
issue in Johnson v. Commissioner, docket No. 7536-
98 (the controlling case) * * * [and] shall be
resolved as if the petitioners in this case were
the same as the taxpayers in the controlling case.
In due course, the Court issued its opinion in the
controlling case, Johnson v. Commissioner, T.C. Memo. 2004-
56, in which we held that the amounts reported by the
taxpayers for taxable years 1993, 1994, and 1995 as rents
from their wholly owned corporation for the lease of their
farmland and personal property are not included in “net
earnings from self-employment” under section 1402(a)(1) and
are not subject to self-employment tax. In deciding that
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