Rogelio R. Balot and Zenaida V. Balot - Page 15




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          1 The $62,339 total includes petitioners’ Form W-2 income from              
               First American Bank and Validity Corporation, and                      
               petitioners’ “Unreported Tip Income” from the CIPAA Casino             
               (Rogelio--$750; Zenaida--$480).                                        
          2 Comparison of a schedule attached to petitioners’ 1993 tax                
               return and the Forms W-2 attached to the same return makes             
               it clear that a transposition of two digits from Zenaida’s             
               CIPAA Casino Form W-2 to the schedule resulted in                      
               petitioners overstating their income by $90.  See supra                
               note 4.                                                                
          3 Petitioners’ 1992 tax return shows a $19,000 capital loss                 
               carryover from 1992 to 1993, stemming primarily from a                 
               $21,688 “Loss in value” on 12,000 shares of PanAm Stock                
               acquired on November 26, 1990.  It does not appear that                
               petitioners claimed any capital loss carryover on their 1993           
               tax return.                                                            
               Petitioners timely filed their tax returns for each of the             
          years in issue: 1991--mid-April 1992, 1992--mid-August 1993, and            
          1993--mid-April 1994.                                                       
               Petitioners’ 1991 and 1992 tax returns were prepared by W.O.           
          Monroyo & Associates.  Petitioners’ 1993 tax return was prepared            
          by Automated Tax & Financial Services.                                      
                            ____________________________                              
               Petitioners failed to report on their tax returns the hourly           
          compensation that the CIPAA Casino paid to each of them in 1991             
          and 1992.  Petitioners failed to report on their tax return the             
          tip income that the CIPAA Casino gathered, apportioned, and                 
          periodically paid to petitioners in 1991.  The failures to report           
          this income resulted in underpayments of tax required to be shown           
          on petitioners’ tax returns for 1991 and 1992.  The failures to             







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