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Based on the record in the instant case, we hold that,
during the years in issue, petitioner has not met her burden of
proving that her photography activity was not an activity not
engaged in for profit within the meaning of section 183(c).
Consequently, the deductions claimed with respect to it are
allowable only as provided by section 183(b). Based on the
record, we are satisfied that petitioner has established that she
incurred expenses deductible pursuant to section 183(b) in
amounts at least equal to the amounts of gross income realized
from her photography activity.4
Section 6651(a) Addition to Tax
Respondent determined that petitioner was liable for the
addition to tax provided by section 6651(a) for 1990 and 1991.
Where a taxpayer fails to file an income tax return on the date
prescribed for filing, section 6651(a)(1) imposes an addition to
tax equal to 5 percent of the amount required to be shown on the
return, with an additional 5 percent to be added for each
additional month or partial month during which the failure
continues, not exceeding 25 percent in the aggregate. The
addition to tax does not apply where the taxpayer demonstrates
4 We note that petitioner has not established the amount of
any cost of goods sold or deductible expenses attributable to the
other activities the income from which is reported on her
Schedules C for the years in issue.
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