Thomas L. & C. Marlene Pias - Page 3

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               Respondent determined a deficiency of $9,934 in petitioners’           
          2001 Federal income tax.  The issues are whether petitioner                 
          Thomas L. Pias (petitioner) was in a trade or business of                   
          gambling and whether the parties had previously settled the case.           
          Petitioners resided in Racine, Wisconsin, when the petition in              
          this case was filed.                                                        
               The facts may be summarized as follows.  After 28 years,               
          petitioner retired as an accountant with a local automobile                 
          distributorship in January 2001.  Prior to that time, he had                
          gambled occasionally at casinos.  In August 2000, petitioner                
          received the following written advice from the local office of              
          the Internal Revenue Service:                                               
               A gambler is engaged in a trade or business [of being a]               
               “professional gambler” when the gambling activity (1) is               
               pursued full time, in good faith, and with regularity, to              
               the production of income for a livelihood, and (2) is not a            
               mere hobby; resolution of this issue requires an examination           
               of the facts in each case.                                             
               Commissioner of Internal Revenue v. Groetzinger                        
               No. 85-1226                                                            
               Supreme Court of The United States                                     
               Subsequent to his retirement, petitioner began going to                
          casinos 2 or 3 times a week.  This shift in his behavior was                
          prompted by what petitioner thought was a “lucky streak.”  His              
          gambling consisted of playing video poker machines.  Petitioner             
          returned to work in September 2001.                                         

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