Rogelio R. Balot and Zenaida V. Balot - Page 22




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          payments from the CIPAA Casino, calculated at the appropriate               
          hourly rate.                                                                
               Petitioners did not report any of this income on the joint             
          tax returns that they filed for 1991 and 1992.  Petitioners do              
          not claim for either year that this unreported income is properly           
          offset by any deductions, etc., in addition to what is shown on             
          their tax returns.8                                                         
               Accordingly, petitioners’ failures to report this hourly               
          compensation on their 1991 and 1992 joint tax returns result in             
          an underpayment of tax required to be shown on their 1991 tax               
          return and an underpayment of tax required to be shown on their             
          1992 tax return.  We have so found.                                         
               Petitioners agree that both of them worked for the CIPAA               
          Casino during each of the years before the Court.  They also                
          agree, or at least do not dispute, that the CIPAA Casino paid to            
          each of them weekly $10 or $12 per hour for each hour petitioners           


               8Respondent need not prove that petitioners did not have               
          offsetting deductions.  Once the Commissioner has presented clear           
          and convincing evidence of unreported gross receipts, the                   
          taxpayer has the burden of coming forward with evidence as to               
          offsetting deductions claimed by the taxpayer, even in criminal             
          cases where the Government must prove a deficiency beyond a                 
          reasonable doubt.  See, e.g., United States v. Hiett, 581 F.2d              
          1199, 1202 (5th Cir. 1978); United States v. Campbell, 351 F.2d             
          336, 338-339 (2d Cir. 1965); Elwert v. United States, 231 F.2d              
          928, 933 (9th Cir. 1956); see also DiLeo v. Commissioner, 96 T.C.           
          858, 872 (1991); Reiff v. Commissioner, 77 T.C. 1169, 1175                  
          (1981).  This rule is independent of the general rule applicable            
          to civil cases, in which the taxpayer has the burden of proving             
          entitlement to deductions before they may be allowed.  See Rule             
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).                       





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