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meaning as used for purposes of section 162. See sec. 1402(c).
Thus, to be engaged in a trade or business within the meaning of
section 1402(a), an individual must be involved in an activity
with continuity and regularity, and the primary purpose for
engaging in the activity must be for income and profit. See
Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987). Petitioners
have the burden of proving that Frank and Katherine are not
liable for self-employment taxes. See Rule 142(a).
In the notices of deficiency, respondent determined that
both Frank and Katherine were involved in Katherine’s palmistry
business and calculated Social Security taxes for each of them.
Petitioners contend, on the other hand, that Frank never worked
or participated in the operation of the palmistry business. We
agree that the record supports petitioners’ position that Frank
was not actively involved in Katherine’s palmistry business.
Additionally, the record does not support a finding that Frank
was engaged in the trade and business of gambling even though he
may have had income from gambling during the years in issue.
Thus, we conclude that Frank did not have net earnings from self-
employment during the years in issue; therefore, he is not liable
for self-employment taxes for those years. We have found,
however, that Katherine was involved in her palmistry business
during all of the years in issue; therefore, she is liable for
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