This is an appeal from a Tax Court decision upholding the Commissioner of Internal Revenue’s disallowance of certain taxpayer deductions, assessment of additional interest, and levy of a negligence penalty. The Tax Court ruling below decided a consolidated case regarding a gold mining scheme entered into by appellants and others. It is reported as Patin v. Commissioner, 88 T.C. 1086 (1987). The relevant facts of the scheme are set out at length in that decision. The five taxpayer cases consolidated in the ruling below were selected by counsel and approved by the court to serve as test cases for resolving issues common to a much larger group of individuals who invested in the scheme. Patin, 88 T.C. at 1087-88 . All five cases were decided against the taxpayers, who have appealed the decision to various circuits. Taxpayers Skeen and his wife have appealed to this court.

The principal issue is whether the Tax Court erred in finding that the Skeens entered into the gold mining program without a primary profit motive apart from the expected tax benefits. In this circuit we have articulated the standard that “the ‘basic and dominant’ motive behind the taxpayer’s activities must be ‘to make a profit or income from those very same activities.’ ” Independent Elec. Supply, Inc. v. Commissioner, 781 F.2d 724 , 726 (9th Cir.1986) (quoting Hirsch v. Commissioner, 315 F.2d 731, 736 (9th Cir.1963)).

The Skeens contend that the Tax Court improperly based its ruling on facts which the Skeens could have known only in hindsight, rather than focusing on their subjective intent at the time they made the investment. The proper focus of the test to be applied here is the taxpayer’s subjective intent. Independent Elec. Supply, 781 F.2d at 726. However, objective indicia may be used to establish that intent. Id.; 26 C.F.R. § 1.183-2 (1988). The burden of proving the requisite profit motive is on the taxpayer. Polakof v. Commissioner, 820 F.2d 321, 323 (9th Cir.1987), cert. denied, — U.S. -, 108 S.Ct. 748 , 98 L.Ed.2d 761 (1988).

The Skeens are incorrect in asserting that the Tax Court imputed to them knowledge of facts that they did not have at the time they invested. While the Tax Court went to great lengths to describe and explain the scheme underlying this consolidated test case, including some facts that the taxpayers would not have known, its analysis of the Skeens’ and the other investors’ intent relies upon facts they knew when they invested, and upon their actions in investing.

Patin, 88 T.C. at 1118-19 (footnote omitted).

The Fourth Circuit in an unpublished decision swiftly disposed of a similar contention by another taxpayer appealing from the Patín decision. We are in full agreement with its analysis. The Fourth Circuit’s per curiam, unpublished affirmance states in full:

Hatheway v. Commissioner, 856 F.2d 186 (4th Cir.1988).

In this case as in Hatheway, the Commissioner assessed an increased rate of interest against the Skeens for some of the years that their tax deficiency remained unpaid. Interest at an increased rate is assessed against any substantial underpayment of tax attributable to “tax motivated transactions.” 26 U.S.C. § 6621 (c) (Supp.IV 1986). The increased rate applies to interest accruing in the years 1985 and after. See Pub.L. No. 98-369 § 144 (c), 98 Stat. 494 , 684 (1984). A “tax motivated transaction” is defined by the statute as, inter alia, “any sham or fraudulent transaction.” 26 U.S.C. § 6621 (c)(3)(A)(v). The Tax Court found that the Skeens made their investment only to obtain tax benefits, and the court therefore rightly concluded that the Skeens entered into a tax-motivated sham transaction. Its assessment of the increased interest rate for the time period covered by the statute was proper.

The only difference between this case and Hatheway is that in addition to the deduction disallowance the Commissioner assessed a negligence penalty against the Skeens. A penalty may be assessed against a taxpayer where any part of an underpayment of tax is due to “negligence or disregard of rules or regulations.” 26 U.S.C. § 6653 (a) (Supp.IV 1986). The taxpayer has the burden of proving that he did what a reasonably prudent person would do under the circumstances. See Hansen v. Commissioner, 820 F.2d 1464, 1469 (9th Cir.1987). The Tax Court’s determination that the taxpayer failed to meet his burden of proving due care is a finding of fact, reviewed for clear error. See id.

The penalty assessed here arises from deductions the Skeens took on their 1980 tax return. They claimed deductions for various amounts grouped in five categories relating to the mining operation. However, Mr. Skeen could not later recall how he arrived at any of those figures, recalling only that he was told by his tax accountant that the categories were “safe” ones.

Patin, 88 T.C. at 1131 .

Mr. Skeen also claims that he relied on advice given to him by co-workers whose experience he respected. However, no reliable evidence exists in the record suggesting the nature of the advice, if any, that he received from them. Id.

The Tax Court committed no error of law or fact. The decision of the Tax Court is AFFIRMED.