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her Merrill Lynch account was not due to fraud and was not
subject to the fraud penalty. Petitioner has not proven that any
other part of the underpayments is not attributable to fraud.
Therefore, the remainder of the underpayments for 1988, 1989,
1990, and 1991 are subject to the 75-percent penalty.
III. Self-Employment Tax
Respondent argues that petitioner had additional self-
employment income during the years in issue based on petitioner’s
unreported income from the law firm plus the disallowed
deductions.
Section 1401 imposes self-employment tax on self-employment
income. Section 1402 defines net earnings from self-employment
as the gross income derived by an individual from the carrying on
of any trade or business by such individual less allowable
deductions attributable to such trade or business.
Respondent argues that the law firm was a partnership, and
thus petitioner was subject to self-employment tax. Petitioner
counters that the law firm was a sole proprietorship. We need
not decide this issue because petitioner’s income from the law
firm is subject to self-employment tax regardless of whether the
law firm was a partnership or a sole proprietorship. Sec.
1402(a). We conclude that petitioner is liable for additional
self-employment tax in 1988, 1989, 1990, and 1991 in accordance
with section 1401 based upon petitioner’s additional self-
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