Richard A. Stasewich - Page 12

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                    The large unabated expenditures, the absence even                 
               at this late date of any concrete business plans to                    
               reverse the losses, and the manner in which petitioner                 
               conducted his artist activity lead to the conclusion                   
               that this was not an activity engaged in for profit.                   
               Eppler v. Commissioner, 58 T.C. 691, 697 (1972), affd.                 
               without published opinion 486 F. 2d 1406(7th Cir 1973).                
               We sustain respondent’s determination that petitioner’s                
          artist activity was an activity not engaged in for profit within            
          the meaning of section 183(a).  Accordingly, the losses incurred            
          by petitioner during the years in issue are not deductible.                 
          II.  Penalties Under Section 6662(a)                                        
               Respondent determined that petitioner is liable for                    
          accuracy-related penalties under section 6662(a) for 1992 through           
          1995.  Section 6662(a) imposes an accuracy-related penalty equal            
          to 20 percent of the portion of the underpayment attributable to,           
          among other things, negligence.                                             
               Petitioner presented neither evidence nor argument on this             
          subject at trial.  In view of petitioner’s training and                     
          experience, imposition of the accuracy-related penalty is                   
          justified for all years in issue.                                           
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                             for respondent.                          

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