- 7 -
Likewise, based on the ratio of losses-to-winnings reflected
in petitioner's dog racing programs for January to June of 1991,
respondent determined that, for the additional gambling winnings
determined by extrapolation, petitioner was entitled to addi-
tional gambling losses, and respondent made such an adjustment in
the notice of deficiency.
OPINION
1990 Taxable Year
Petitioner claimed $87,619 in gambling winnings and $78,864
in gambling losses on his 1990 return. After audit, respondent
disallowed his claimed gambling losses in the notice of defi-
ciency. Petitioner bases his challenge to the 1990 deficiency on
his claim for the Court to estimate his losses, citing Cohan v.
Commissioner, 39 F.2d 540 (2d Cir. 1930).
Taxpayers have the burden of showing that they are entitled
to a gambling loss deduction. Norgaard v. Commissioner, 939 F.2d
874, 878 (9th Cir. 1991), affg. in part, revg. in part T.C. Memo.
1989-390. Section 6001 requires taxpayers to keep adequate
records to substantiate their income and deductions. See also
sec. 1.6001-1(a), Income Tax Regs. Absent production of adequate
records sustaining a taxpayer's claimed losses, taxpayers are not
entitled to any gambling deduction. Norgaard v. Commissioner,
939 F.2d at 878; Conley v. Commissioner, T.C. Memo. 1992-215.
However, under the rule of Cohan v. Commissioner, supra at 543,
when a taxpayer fails to keep records, but a court is convinced
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