Cohen v. Commissioner
United States Tax Court
1. Where a taxpayer received money from the illegal operation of various enterprises, such as night clubs where liquor was sold and gambling carried on, the operation of slot machines, and the operation of a "handbook" for the placing of bets on horse racing, and kept no accounts or records of his transactions, the Government was justified in determining his income by adding thereto an item designated "excess cash expenditures," calculated by deducting all ascertainable cash…
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1. Where a taxpayer received money from the illegal operation of various enterprises, such as night clubs where liquor was sold and gambling carried on, the operation of slot machines, and the operation of a "handbook" for the placing of bets on horse racing, and kept no accounts or records of his transactions, the Government was justified in determining his income by adding thereto an item designated "excess cash expenditures," calculated by deducting all ascertainable cash receipts from the ascertainable cash expenditures. 2. A taxpayer's unexplained failure to testify gives rise to a…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
In these cases we are dealing with the tax liability of a taxpayer whose income admittedly was derived from his connection with illegal business activities. The night clubs where liquor was sold and. gambling carried on, the operation of slot machines, and the operation of a “handbook” for the placing of bets on horse racing were all in violation of laws of the State of Kansas. Most of the witnesses came from that lawless fringe of society where arrests and the serving of time for law violations are common occurrences. The crimes of which various of the witnesses had…
2Cited by68 opinions
- William J. Drieborg and Laura D. Drieborg v. Commissioner of Internal Revenue, William J. Drieborg v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1955
- Estate of Beck v. Comm'rUnited States Tax Court · 1971
- Vannaman v. CommissionerUnited States Tax Court · 1970
- Cohen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1949
- Kilpatrick v. CommissionerUnited States Tax Court · 1954
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