Rickard v. Commissioner
United States Board of Tax Appeals
1. A taxpayer is required to report as income profits received, even though he believes he may later incur expenses equal to such profits in lawyer's fees and fines necessitated by indictments growing out of the enterprise from which the profits arose. 2. Profits must be reported even though the enterprise was illegally carried on. 3. Held, on the evidence, that no fraud was proven in the omission of such profits from the tax return. 4. When fraud is alleged respondent must…
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1. A taxpayer is required to report as income profits received, even though he believes he may later incur expenses equal to such profits in lawyer's fees and fines necessitated by indictments growing out of the enterprise from which the profits arose. 2. Profits must be reported even though the enterprise was illegally carried on. 3. Held, on the evidence, that no fraud was proven in the omission of such profits from the tax return. 4. When fraud is alleged respondent must prove the same by clear and convincing evidence.
1Opinion of the Court
OPINION.
Van Fossan :
The petitioner in this proceeding, George L. Rickard, popularly known as “ Tex ” Rickard (now deceased), was a professional promoter whose enterprise lead him from the gold fields of Alaska and Nevada to the cattle ranches of South America and thence to the City of New York, where he was manager of Madison Square Garden. The range of his activities as pertinently shown by the record in this case extended from the operation of a saloon and dance hall in Rawhide, Nev., to the promotion of world championship prize fights. From this latter activity arose the first ground of…
2Cases cited1 opinion
- United States v. SullivanSupreme Court of the United States · 1927
3Cited by17 opinions
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- Smith v. CommissionerUnited States Tax Court · 1988
- KERBAUCH v. COMMISSIONERUnited States Board of Tax Appeals · 1934
- Drawoh, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933
- Bernheim v. CommissionerUnited States Tax Court · 1950
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