Linda M. Myers - Page 3




                                         -2-                                          
               Respondent determined a $5,266 deficiency in petitioner’s              
          Federal income tax for 2003 and determined that petitioner was              
          liable for a $1,055 accuracy-related penalty under section                  
          6662(a).  After concessions,2 the sole issue for decision is                
          whether petitioner was in the trade or business of gambling in              
          2003.  We hold that she was.                                                
                                     Background                                       
               Some of the facts have been stipulated and are so found.               
          The stipulation of facts and the accompanying exhibits are                  
          incorporated by this reference.  Petitioner resided in South                
          Saint Paul, Minnesota, at the time she filed the petition.                  
          Petitioner’s Activities                                                     
               Petitioner spent nearly all of her time during 2003 pursuing           
          two activities, a trucking business that she owned and operated,            
          and her gambling activity.  She spent 25 to 35 hours per week               
          working at the trucking business and about 40 hours per week on             
          the gambling activity.                                                      
               Petitioner oversaw the management and operations functions             
          of her trucking business, which employed eleven drivers for eight           
          trucks in 2003.  She worked diligently to maintain the                      
          documentation required to run a successful trucking business,               
          such as licenses, maintenance logs, and insurance matters.                  
          Petitioner retained an accountant to assist her with financial              



               2Respondent concedes that petitioner is not liable for the             
          accuracy-related penalty under sec. 6662(a).                                





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next 

Last modified: March 27, 2008