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Cir. 1989). Hatheway v. Commissioner, 856 F.2d 186 (4th Cir.
1988), affd. sub nom. Skeen v. Commissioner, 864 F.2d 93 (9th
Cir. 1989), affd. sub nom. Gomberg v. Commissioner, 868 F.2d 865
(6th Cir. 1989); Bessenyey v. Commissioner, 45 T.C. 261 (1965),
affd. 379 F.2d 252 (2d Cir. 1967). It was thus under well-
settled legal principles that we denied petitioners' deduction
for the losses generated by Mr. Resser's account QRF option
spread transactions.
On brief, respondent cites two cases to support a finding
that, despite our holding in Resser I that Mr. Resser lacked the
requisite profit motive, the claimed option losses are not
grossly erroneous items. Each, however, is distinguishable from
the instant case. See Russo v. Commissioner, 98 T.C. 28, 29
(1992) ("London Options" commodity straddle tax shelter initially
sanctioned by several Internal Revenue Service private letter
rulings); Anthony v. Commissioner, T.C. Memo. 1992-133 (no
evidence presented by taxpayer, other than statutory notice of
deficiency, to prove that disallowed losses from computer-leasing
activity, which were eventually the subject of a compromise
settlement between the Internal Revenue Service and the
investors, were grossly erroneous). Respondent also makes much
of our discussion in Resser I where, with regard to the section
6661 addition to tax, we stated:
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