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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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