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losses deducted on that return, $19,690. Petitioner
testified at trial that at one time he had records
consisting of a shoe box full of losing tickets from the
racetrack that would have substantiated the loss deduction
but that those records were lost when the undercover
investigation was terminated. Petitioner testified as
follows:
THE WITNESS: *** Now, as one of the letters
indicates from the FBI, that things were left
behind. One of the things that was left behind
in the safe was a shoebox of losing [racetrack]
tickets that would have served [sic] the $19,000.
Even if we were to accept petitioner's explanation for
his failure to verify the gambling losses claimed on his
1991 return, we could not agree that he has met his burden
of proof regarding the gambling losses. Petitioner did not
prove the amount of his gambling winnings, both reported
and unreported, and, thus, he failed to prove that the
amount of the wagering losses claimed on his 1991 return,
$19,690, is greater than his unreported gains from wagering
transactions.
Petitioner acknowledged during his testimony at trial
that he had additional winnings that were not reported on
his return. On cross-examination, petitioner testified as
follows:
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