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.
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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
OPINION.
TueneR, Judge:
This is another of those cases wherein the primary question is as to the amount of gross income, namely, the ins less the outs, realized by an individual engaged in an illegal business of soliciting and accepting bets on horse racing. The respondent, in his determination, has accepted as petitioner’s gross recipts from bets the amounts which were reported by him in his income tax returns, and petitioner makes no claim that they were in error. Respondent has not agreed, however, that the petitioner has correctly reported the amounts disbursed to winning bettors, namely,…
2Cases cited5 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
3Cited by3 opinions
- Barnes Theatre Ticket Service, Inc. v. CommissionerUnited States Tax Court · 1967
- McGrath v. CommissionerUnited States Tax Court · 1956
- Metas v. CommissionerUnited States Tax Court · 1982