McGrath v. Commissioner
United States Tax Court
Petitioner Albert McGrath operated an illegal bookmaking business during the years 1948, 1949, and 1950. In his income tax returns for those years, the gross profits reported amounted to 6.39 per cent, 5.56 per cent, and 7.86 per cent, respectively, of the total bets reported as received. There was no way in which the entries in petitioner's books and records could be substantiated or verified.
Read the full summary
Petitioner Albert McGrath operated an illegal bookmaking business during the years 1948, 1949, and 1950. In his income tax returns for those years, the gross profits reported amounted to 6.39 per cent, 5.56 per cent, and 7.86 per cent, respectively, of the total bets reported as received. There was no way in which the entries in petitioner's books and records could be substantiated or verified. Respondent did not question the amount of gross receipts and expenses as reported, but in his determination of gross profits disallowed the amounts claimed as "pay outs" to winning bettors by $…
1Opinion of the Court
Albert D. McGrath and Anne McGrath, Petitioners, v. Commissioner of Internal Revenue, Respondent
McGrath v. Commissioner
Docket No. 47206
United States Tax Court
27 T.C. 117; 1956 U.S. Tax Ct. LEXIS 59;
October 29, 1956, Filed
Decision will be entered under Rule 50.
Petitioner Albert McGrath operated an illegal bookmaking business during the years 1948, 1949, and 1950. In his income tax returns for those years, the gross profits reported amounted to 6.39 per cent, 5.56 per cent, and 7.86 per cent, respectively, of the total bets reported as received. There was no way in which the entries in…
2Cases cited6 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Humphreys v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1942
- Commissioner of Internal Revenue v. Charles v. Doyle and Clara DoyleCourt of Appeals for the Seventh Circuit · 1956
- Nemmo v. CommissionerUnited States Tax Court · 1955
- Mesi v. CommissionerUnited States Tax Court · 1955
1 more not listed; retrieve them via the Exa API.