1977 Tax Ct. Memo LEXIS 312 | Tax Ct. | 1977
1977 Tax Ct. Memo LEXIS 312">*312
MEMORANDUM FINDINGS OF FACT AND OPINION
WILES,
FINDINGS OF FACT
Some facts have been stipulated and are found accordingly.
Petitioner and his wife, Ginger, lived in Memphis, Tennessee, when they filed their 1973 income tax return and when they filed their petition in this case.
During 1973, petitioner, a non-professional gambler, placed bets with the Southland Racing Corporation in West Memphis, Arkansas. He was paid the following amounts on the dates indicated:
Date | Amount |
May 26, 1973 | $ 3,223.20 |
June 23, 1973 | 759.00 |
July 7, 1973 | 758.00 |
July 19, 1973 | 930.20 |
July 23, 1973 | 875.60 |
August 2, 1973 | 1,496.20 |
August 11, 1973 | 1,860.00 |
August 23, 1973 | 994.20 |
September 28, 1973 | 666.20 lOctober 5, 1973 |
759.20 | |
October 15, 1973 | 714.20 |
October 22, 1973 | 742.40 |
TOTAL | $13,778.40 |
On his 1973 income tax return (Form 1040), petitioner entered the remark "Gambling losses exceeded gains" on line 37 of Part I (Income other than Wages, Dividends, and Interest). No income or losses from gambling were reported on the return. Petitioner elected to take the standard deduction rather than to itemize deductions.
Petitioner is an accountant employed by a certified public accounting firm.
Of those records petitioner may have kept concerning his gambling losses, none were offered as evidence.
Petitioner's underpayment of tax for 1973 was due to negligence or intentional disregard of rules and regulations.
OPINION
Petitioner won at least $13,778.40 during 1973 at the races. On his 1973 income tax return, he merely indicated on line 37, Part I (Income other than Wages, Dividends, and Interest) that "Gambling losses exceeded gains."
It is clear that petitioner, a non-professional gambler, may not use this method to "report" gambling gains and losses. As a non-professional gambler, he should have reported his gambling income and1977 Tax Ct. Memo LEXIS 312">*315 then taken, as an
Even if petitioner were a professional gambler, petitioner has provided us with absolutely no substantiation of his gambling losses aside from his self-serving testimony. 1977 Tax Ct. Memo LEXIS 312">*316 He has the burden of proving his losses.
The next issue is whether petitioner should be assessed an addition to tax, pursuant to section 6653(a). Section 6653(a) is a penalty assessed for negligence or intentional disregard of rules and regulations. Petitioner has the burden of showing that respondent's determination is incorrect.
Footnotes
1. Statutory references are to the Internal Revenue Code of 1954, as amended.↩