Summary
The United States Tax Court held that gambling-casino “tokes” received by the petitioners were taxable gross income rather than nontaxable gifts. Because the petitioners presented no evidence, the court sustained the deficiency and negligence addition, and it rejected their demand for a jury trial.
Holdings
- Money received from casino patrons as "tokes" is not a gift and must be included in the taxpayer's gross income.
- Petitioners were liable for the addition to tax under section 6653(a) because they failed to prove that any underpayment was not due to negligence.
- There is no right to a jury trial in the Tax Court, and denial of a jury trial does not violate the Seventh Amendment.
Questions Presented
- Whether money received by petitioners from casino patrons as "tokes" constituted taxable gross income rather than nontaxable gifts.
- Whether petitioners were liable for the addition to tax for negligence under section 6653(a).
- Whether petitioners had a right to a jury trial in the Tax Court.
Disposition
other
Cases Cited (7)
- Olk v. United States, 536 F.2d 876 (9th Cir. 1976)(followed)
- Welch v. Helvering, 290 U.S. 111 (1933)(followed)
- Enoch v. Commissioner, 57 T.C. 781 (1972)(followed)
- Wickwire v. Reinecke, 275 U.S. 101 (1927)(followed)
- Browne v. Commissioner, 73 T.C. 723 (1980)(followed)
- Malone v. Commissioner, T.C. Memo. 1982-325(cited)
- Williams v. Commissioner, T.C. Memo. 1980-494(cited)
Cited In (0)
No citing cases on record yet.
Court Document
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