Dwight D. Spann v. Commissioner., United States Tax Court - Memorandum Decision, T.C. Memo. 1997-235, Docket No. 15339-95., Filed May 21, 1997

Dwight D. Spann v. Commissioner.

United States Tax Court - Memorandum Decision

T.C. Memo. 1997-235

Docket No. 15339-95.

Filed May 21, 1997.

Dwight D. Spann, pro se. Herbert W. Linder, for the respondent.

MEMORANDUM FINDINGS OF FACT AND OPINION

POWELL, Special Trial Judge: This case was assigned pursuant to the provisions of section 7443A(b)(3) and Rules 180, 181, and 182. ¹

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¹ All section references are to the Internal Revenue Code in effect for the years in issue, and Rule references are to the Tax Court Rules of Practice and Procedure.

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Respondent determined deficiencies in petitioner's Federal income taxes for the taxable years 1992 and 1993 in the amounts of $2,134 and $2,518, respectively.

After a concession, ² the sole issue is whether petitioner is liable for self-employment tax for the years in issue. Petitioner resided in Enon Valley, Pennsylvania, at the time the petition was filed.

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² Respondent concedes that petitioner is entitled to earned income credits pursuant to sec. 32 for the taxable years 1992 and 1993 in the amounts of $1,184 and $1,429, respectively.

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FINDINGS OF FACT

The facts are not disputed and may be summarized as follows. Petitioner is a carpenter. During the taxable years 1992 and 1993, petitioner's sole source of income was income earned from self-employment in the amounts of $6,724 and $7,708, respectively. Petitioner did not pay any self-employment tax for the years in issue. In the notice of deficiency, respondent determined that petitioner is liable for self-employment tax for the taxable years 1992 and 1993 in the amounts of $950 and $1,089, respectively. Petitioner contends that the self-employment tax does not, or at least should not, apply to individuals at his modest income level.

OPINION

Section 1401 imposes Social Security and medicare taxes (self-employment tax) on income derived by an individual from a trade or business (self-employment income) in excess of $400 to pay for old-age, survivors and disability insurance, and hospital insurance. Secs. 1401 and 1402(b) and (c); Culp v. Commissioner [Dec. 41,002(M)], T.C. Memo. 1984-78. Since petitioner's self-employment income for each of the years in issue exceeds $400, petitioner is liable for self-employment tax in the amounts determined in the notice of deficiency. As to the fairness of such a taxing regime, petitioner's avenue of redress lies with Congress, for we must apply the law as written. Metzger Trust v. Commissioner [Dec. 37,614], 76 T.C. 42, 59-60 (1981), affd. [82-2 USTC ╤ 9718] 693 F.2d 459 (5th Cir. 1982).

To reflect respondent's concession,

Decision will be entered under Rule 155.

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