- 10 - themselves, these facts do not preclude petitioner from being engaged in the trade or business of gambling. However, such factors were considered by the Supreme Court in Groetzinger and are relevant to our determination. See Commissioner v. Groetzinger, 480 U.S. at 24-25, 35-36. We find that these facts weigh against petitioner’s being engaged in the trade or business of gambling. See Jones v. Commissioner, T.C. Memo. 1988-393. Taking into consideration all of the above, we find petitioner was not engaged in the trade or business of gambling in 2002. Therefore, petitioner is not entitled to report his gambling activity on Schedule C. Instead, petitioner must claim his gambling losses as an itemized deduction on Schedule A, as determined by respondent. We sustain respondent’s determination that the amount of tax required to be shown on petitioner’s 2002 Federal income tax return was $40,399, resulting in a deficiency of $17,096. II. Accuracy-Related Penalty Under Section 6662(a) Respondent determined petitioner is liable for an accuracy- related penalty under section 6662(a) for 2002 of $3,419. Petitioner argues he is not liable for an accuracy-related penalty because he reasonably relied upon the advice of his accountant. Section 6662(a) imposes a penalty in the amount of 20 percent of the portion of the underpayment to which section 6662Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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