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However--
(1) As we note in Executive Network Club, Inc. such
tips are income to those workers who ultimately receive the
money, but in the instant case petitioners did not report
any of this tip income on their 1991 tax return.
(2) Such tips are separate from the hourly compensation
that each petitioner received in each year; the hourly
compensation also is income; and petitioners did not report
any of this hourly compensation on their 1991 and 1992 tax
returns.
Thus our opinion in Executive Network Club, Inc. v.
Commissioner, supra, does not support any of petitioners’
relevant contentions, but rather is consistent with, and
supports, respondent’s position in the instant case.
We hold that respondent has proven by clear and convincing
evidence that each petitioner received taxable tip income in 1991
and 1992, and that petitioners failed to report their 1991 tip
incomes. However, we also hold that respondent failed to prove,
by even a preponderance of the evidence, (a) the amount of either
petitioner’s unreported 1991 tip income and (b) whether
petitioners failed to report any 1992 tip income.11
11On opening brief, respondent asserts that “these tips
clearly accounted for a large part, if not virtually all, of the
‘other unreported income.’” Respondent has not favored us with
citations to evidence of record that would support this assertion
(continued...)
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