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Petitioner has failed to earn any income from his golfing
activity since its commencement in 1991. At trial, petitioner
stated that it was unknown to him when he would earn sufficient
income as a professional golfer to sustain the expenses from his
activity. Since July 1995, petitioner has been giving golf
lessons as a means of earning income to finance his golfing
activity. It appears the only reason petitioner has not claimed
Schedule C losses since 1991 is that he had no other income
against which he could deduct the expenses of his activity.
Petitioner did not keep regular books and records of his golfing
activity.
After considering all of the facts and circumstances, the
Court concludes that petitioner failed to carry the burden of
establishing that his golfing activity was carried on with the
actual and honest objective of making a profit. See the similar
case of Heywood v. Commissioner, T.C. Memo. 1994-575.
Accordingly, respondent is sustained on this issue.
The next issue is whether petitioner is liable for the
penalty under section 6662(a) for negligence or disregard of
rules or regulations. In pertinent part, section 6662 imposes an
accuracy-related penalty equal to 20 percent of the portion of an
underpayment of tax that is attributable to negligence or
disregard of rules or regulations. Sec. 6662(a), (c). Section
6662(c) defines "negligence" as including any failure to make a
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