Clayton v. Commissioner
United States Tax Court
1. Police raided Ps' residence and that of a confederate in a bookmaking operation, and seized various wagering paraphernalia and records of bets handled by P on two National Football League Conference championship games played on a single day in January, 1990. R's agent applied a 4.5 percent profit factor to the total bets, and extrapolated P's wagering income for two years from these figures.
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1. Police raided Ps' residence and that of a confederate in a bookmaking operation, and seized various wagering paraphernalia and records of bets handled by P on two National Football League Conference championship games played on a single day in January, 1990. R's agent applied a 4.5 percent profit factor to the total bets, and extrapolated P's wagering income for two years from these figures. P's actual profit from the bets he took on the two games was approximately 10 percent of the amount arrived at by the profit-factor method. R's agent made an alternative computation of Ps' unreported…
1Opinion of the Court
Nims, Judge:
In these consolidated cases respondent determined income tax deficiencies and additions to tax as follows:
Taxable Year 1989
Addition to tax sec. Petitioners Deficiency 6663(a)
David G. Clayton and
Barbara A. Clayton $32,598 $24,449
(Except as otherwise noted, all section references are to sections of the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.)
For 1989, respondent’s answer asserts, in the alternative to the addition to tax under section 6663(a), a 20-percent addition to tax under section 6662.
2Cases cited12 opinions
- Chris D. Stoltzfus and Irma H. Stoltzfus v. United StatesCourt of Appeals for the Third Circuit · 1968
- Tokarski v. CommissionerUnited States Tax Court · 1986
- Grosshandler v. CommissionerUnited States Tax Court · 1980
- Robert W. Bradford v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1986
- Johnny Weimerskirch v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1979
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