Taxpayer attended a meeting of a multi-level marketing association (MLM) and was persuaded to sign up. She only bought some of the MLM materials for her own use, and never at any time tried to recruit other members into the MLM. She was eventually paid a total of less than $100, a portion of the purchases made by people who joined the MLM after she did, but were recruited by the same person who recruited her rather than by herself.
On the one hand, the taxpayer's behavior seems to perfectly fit the definition of a hobby. She did not sign up with the MLM for income or profit and was not involved with "continuity and regularity". The taxpayer has not even kept the receipts for materials purchased from the MLM. Therefore it makes sense to me to report the