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mining activity for 1991, 1992, 1993, and 1994 constituted an
activity engaged in for profit within the meaning of section 183,
and (2) whether petitioner was liable for the accuracy-related
penalty under section 6662(a) for each of the years at issue.
Following a trial on the merits, we held in Tinnell v.
Commissioner, T.C. Memo. 2001-106 (Tinnell I), that petitioner’s
mining activity was an activity engaged in for profit within the
meaning of section 183 and that petitioner was liable for the
accuracy-related penalty with respect to the stipulated and
computational issues and the adjustment with respect to
petitioner’s exercise of his Zila stock options. We based our
holding with respect to section 183 on a review of the relevant
facts and circumstances and an analysis of nine factors,
enumerated in section 1.183-2(b), Income Tax Regs. This Court
and others, including the Court of Appeals for the Ninth Circuit
to which an appeal in this case would lie, typically apply these
factors to evaluate whether a taxpayer conducted his activity
with the intention of making a profit. See, e.g., Golanty v.
Commissioner, 72 T.C. 411, 426 (1979), affd. without published
opinion 647 F.2d 170 (9th Cir. 1981).
After we issued our opinion in Tinnell I, petitioner filed a
motion for award of litigation costs in which he alleges that he
satisfies all of the requirements of section 7430 and that he is
entitled to litigation costs of $187,958.22.
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