Curtis and Mary Ettesvold - Page 4

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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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