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480 U.S. 23, 30 (1987).
Raymond spent most of his time and effort during the years
at issue on the buyers group activity. He had no intent to
profit from that activity, as indicated by the fact that he
distributed the products to the members of the group at cost.
Raymond collected sports memorabilia hoping the items would
eventually appreciate in value. He sold only a few items from
his massive collection and retained much more than he sold. In
relation to his buying of memorabilia, his selling was sporadic.
He continued to amass items for his collection (including
hundreds of manual typewriters and tens of thousands of Cleveland
Indian programs) without any plan to turn over items at any date
in the foreseeable future and without any consideration of the
cost effectiveness of paying rent to store the items.
After careful consideration of all the facts and
circumstances, we find that Raymond's memorabilia activity does
not rise to the level of a trade or business. See Sloan v.
Commissioner, T.C. Memo. 1988-294, affd. without published
opinion 806 F.2d 547 (4th Cir. 1990). Accordingly, Raymond did
not have net earnings from self-employment during 1991 and 1992,
and he is not liable for self-employment tax for those years.
Issue 3. Whether Petitioners Are Liable for the Accuracy-Related
Penalty Under Section 6662(a)
Section 6662(a) and (b)(1) impose accuracy-related penalties
equal to 20 percent of the portion of an underpayment that is
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