When a case that involves unreported income is appealable to the Court of Appeals for the Ninth Circuit, as this case appears to be absent a stipulation to the contrary, see sec. Burden of ProofĪs a general rule, the Commissioner’s determination of a taxpayer’s liability in a notice of deficiency is presumed correct, and the taxpayer bears the burden of proving that the determination is incorrect. Petitioners timely petitioned this Court, and a trial was held on March 17, 2017. On the basis of this information respondent issued a notice of deficiency in which he determined that petitioners had unreported gambling income of $5,0. Respondent received three Forms W-2G, Certain Gambling Winnings, reporting petitioner husband’s receipt of gambling winnings as follows: Individual Income Tax Return, petitioners did not report any gambling winnings or losses for the 2013 taxable year and claimed a standard deduction of $12,200.

That same year petitioners also sustained $6,983.25 in gambling losses. That year petitioner husband won $5,060 on slot machines at three different casinos. Petitioners resided in Agoura Hills, California, when they filed their petition.ĭuring 2013 petitioner husband engaged in a variety of recreational gambling activities: he bet on college and professional sports, played slot machines, and bought lottery tickets. The stipulation of facts and the attached exhibits are incorporated herein by this reference. Some of the facts have been stipulated and are so found. After concessions, 1 the issues for decision are whether petitioners: (1) must include gambling winnings of $5,060 in their gross income and (2) may use their gambling losses to offset their gambling winnings. VASQUEZ, Judge: With respect to petitioners’ Federal income tax for 2013, respondent determined a deficiency of $2,430. William Bon Viso and Clare Bon Viso, pro sese. COMMISSIONER OF INTERNAL REVENUE, Respondent WILLIAM BON VISO AND CLARE BON VISO, Petitioners v.

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