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The issues2 for decision are:
1. Whether petitioner may deduct more business expenses
than respondent allowed for 1999 and 2000. We hold that he may
not.
2. Whether petitioner is liable for self-employment tax of
$5,339 for 1999 and $4,313 for 2000. We hold that he is.
3. Whether petitioner is entitled to the earned income
credit for 1999 and 2000. We hold that he is not.
4. Whether petitioner is liable for accuracy-related
penalties under section 6662(a) for 1999 and 2000. We hold that
he is.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
A. Petitioner
Petitioner lived in Anacortes, Washington, when he filed the
petition. In 1999 and 2000, he was a self-employed journalist.
Petitioner has six children: Mark, Matthew, Miranda,
Martin, Melanie, and Marlon. Martin and Marlon were his
dependents in 1999.
B. Petitioner’s 1999 and 2000 Tax Returns and Respondent’s
Computational Corrections to Petitioner’s Returns
Petitioner timely filed Federal income tax returns for 1999
and 2000. He included with each of those returns a Schedule C,
2 Respondent determined that petitioner is entitled to a
child tax credit of $1,000 on his 1999 and 2000 tax returns.
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