-2-
under section 6662(a)1 in the respective amounts of $851 and
$1,751.
The issues for decision are: (1) Whether petitioner was in
the trade or business of being an author during the years in
issue; if so, (2) whether expenses that petitioner incurred are
deductible as ordinary and necessary under section 162 and
whether he has adequately substantiated under section 274(d) his
travel expenses;2 and (3) whether petitioner is liable for
penalties for negligence or substantial understatement of tax
under section 6662(a). In the notice of deficiency, respondent
disallowed petitioner's medical expense deduction for 1994
because of the increase in the amount of adjusted gross income
determined. The correctness of this adjustment depends upon our
resolution of the issues stated above.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts and second stipulation of facts,
together with the exhibits attached thereto and exhibits offered
1All section references are to the Internal Revenue Code in
effect for the taxable years in issue, and all Rule references
are to the Tax Court Rules of Practice and Procedure, unless
otherwise indicated.
2Although respondent did not raise the substantiation issue
under sec. 274 in the notice of deficiency or in the pleadings,
it was tried by both parties and without objection by petitioner.
See Rule 41(b)(1).
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