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respondent’s brief introduces an uncertainty as to the amount of
Rogelio’s 1992 hourly compensation. See supra note 3.
2. The CIPAA Casino--Tip Income
The record is clear that each petitioner also received each
year an appropriate portion of the tips that the casino’s patrons
left in 1991 and 1992.10 Petitioners did not report any tip
income on their 1991 tax return. Petitioners reported 1992 tip
income of $750 for Rogelio and $480 for Zenaida. Apart from
petitioners’ thus-reported 1992 tip income, we do not find
anything in the record that would enable us to quantify
petitioners’ tip income for 1991 or 1992.
Petitioners urge, in both opening brief and answering brief,
that our opinion in Executive Network Club, Inc. v. Commissioner,
T.C. Memo. 1995-21, “highlights the extent to which the IRS’ case
10On opening brief, respondent asserts that, in addition to
the tips that the CIPAA Casino gathered from patrons and
distributed to the dealers, etc., “Moreover, in each year,
petitioners received cash tips directly from patrons. (Tr. pp.
191-193).” We have found, supra, that “The record does not show
that either petitioner received any such direct tips.” The
transcript pages that respondent cites refer to the testimony of
another person who worked for the CIPAA Casino during at least
part of the period in issue in the instant case. That person
testified that she had received such direct tips. Respondent’s
counsel asked: “Okay. Did other employees earn tips in this
manner as well?” The witness replied: “Probably, I don’t know.”
Later, petitioners’ counsel asked that witness: “Did you ever
see someone on the see [side ?] pay Mr. Balot or Mrs. Balot?”
The witness replied: “I don’t recall, sir, because it was done
secretly.” Thus the only evidence to which respondent directs
our attention, or that our examination has turned up, is a
disclaimer of knowledge. Respondent’s assertion on this point is
unfounded on the record in the instant case.
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