Sutherland v. Commissioner
United States Tax Court
1. Duty of Taxpayers, in General -- Records of Income. -- Every taxpayer is required to fully report all gross income, and must keep records of total amounts of all kinds of income so as to show himself and the Commissioner the entire amount of income. Petitioners did not keep any kind of records of the amounts of tips each received.
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1. Duty of Taxpayers, in General -- Records of Income. -- Every taxpayer is required to fully report all gross income, and must keep records of total amounts of all kinds of income so as to show himself and the Commissioner the entire amount of income. Petitioners did not keep any kind of records of the amounts of tips each received. Held, petitioners failed in meeting their burden of proof, in part, because they negligently failed to keep records of the amounts of their tips. 2. Burden of Proof. -- The Commissioner's determinations are presumed to be correct, and taxpayers have the burden of…
1Opinion of the Court
OPINION.
Habkon, Judge:
Tips are part of compensation for services, therefore, taxable income under section 22(a), 1939 Code, as petitioners admit. Roberts v. Commissioner, 176 F. 2d 221, affirming 10 T.C. 581; Regs. 111, sec. 29.22(a)-2. The question for decision is whether the amount of tips received by each petitioner in each taxable year is a larger amount than was reported.
The respondent has determined that each petitioner received a specific amount of tips. His determination is presumptively correct under law and each petitioner has the burden of proving that each amount for tips actually…
2Cases cited11 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Halle v. CommissionerUnited States Tax Court · 1946
- Halle v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
- Reinecke v. SpaldingSupreme Court of the United States · 1930
- Hague Estate v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1943
6 more not listed; retrieve them via the Exa API.
3Cited by95 opinions
- Meneguzzo v. CommissionerUnited States Tax Court · 1965
- Schroeder v. CommissionerUnited States Tax Court · 1963
- Estate of Beck v. Comm'rUnited States Tax Court · 1971
- Melvin Williams Mary Williams v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1993
- O'Connor v. CommissionerUnited States Tax Court · 1967
90 more not listed; retrieve them via the Exa API.