                           T.C. Memo. 1997-131



                         UNITED STATES TAX COURT



                  FREDERIC W. MERCER, Petitioner v.
            COMMISSIONER OF INTERNAL REVENUE, Respondent



       Docket No. 1666-95.                       Filed March 12, 1997.



       Frederic W. Mercer, pro se.1

       Donald E. Edwards, for respondent.



                           MEMORANDUM OPINION

       CHIECHI, Judge:    Respondent determined the following

deficiencies in, and additions to, petitioner's Federal income

tax:

1
   Richard Mildren, who has not been admitted to practice before
this Court, appeared on behalf of petitioner. Based on Mr.
Mildren's representation that he possessed the requirements
needed to be admitted to practice before this Court, we specially
recognized him to represent petitioner at trial.
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                                  Additions to Tax
        Year   Deficiency    Sec. 6651(a)(1)2 Sec. 6654

        1986    $11,553        $2,888.25        $558
        1988     15,174         2,956.50         731
        1990     15,187         3,189.25         997
        1991     25,369         5,342.25         967

      The issues remaining for decision are:3

      (1)   Is petitioner entitled to a net operating loss

deduction for each of the years at issue that is attributable to

an alleged net operating loss carryover from his taxable year

1985?   We hold that he is not.

      (2)   Is petitioner liable for each of the years at issue for

the addition to tax under section 6651(a)(1)?    We hold that he

is.

      (3)   Is petitioner liable for each of the years at issue for

the addition to tax under section 6654?    We hold that he is.

      Some of the facts have been stipulated and are so found.

      Petitioner resided in Laguna Beach, California, at the time

the petition was filed.

      Petitioner, who used the cash method of accounting for each


2
   All section references are to the Internal Revenue Code in
effect for the years at issue. All Rule references are to the
Tax Court Rules of Practice and Procedure.
3
   In the stipulation of facts in this case, petitioner conceded
all of the income determinations in the notice of deficiency
(notice) for each of the years at issue except a determination
described in the notice as a "capital gain/loss adjustment" in
the amount of $45. At trial, petitioner presented no evidence
and made no argument about that determination, and we conclude
that he does not dispute it.
                                 - 3 -

of the years 1986, 1988, 1990, and 1991, failed to file a Federal

income tax return for any of those years.

     Although the record does not disclose the exact nature of

his activities, during the 1980's, petitioner was involved in

real estate, real estate investments, and real estate securities.

     Petitioner has the burden to show that he is entitled to the

net operating loss deductions that he is claiming and that he is

not liable for the additions to tax determined under sections

6651(a)(1) and 6654.   Rule 142(a).

     Except for his general and conclusory testimony that he had

a net operating loss of approximately $55,000 for his taxable

year 1985, petitioner has presented no evidence to establish the

income that he had and the expenses to which he is entitled for

1985, and consequently he has not shown that he had a net

operating loss for that year.4

     Petitioner presented no evidence and advanced no argument

regarding the additions to tax determined in the notice.

     On the record before us, we find that petitioner has failed

to show that he is entitled to the net operating loss deductions

that he is claiming for the years at issue.   We further find that


4
   Assuming arguendo that petitioner had established that he
had a net operating loss for 1985, he has not shown (1) that
that loss was not fully utilized when it was carried back to
each of the three years preceding 1985 as required by sec.
172(b)(1)(A) or (2) that he made an election to relinquish the
carryback of that loss pursuant to sec. 172(b)(3)(C).
                                 - 4 -

he has failed to establish error in respondent's determinations

under sections 6651(a)(1) and 6654.      Accordingly, we reject

petitioner's claim for net operating loss deductions for the

years at issue and sustain respondent's determinations imposing

the additions to tax under sections 6651(a)(1) and 6654 for those

years.

     To reflect the foregoing,


                                 Decision will be entered

                         for respondent.
