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20 equal annual installments beginning in 1989. In 1996,
petitioner received $1,238,100 as lottery winnings, and he no
longer worked for the Nigerian Consulate General. He disclosed
his lottery winnings on his 1996 income tax return and claimed
that the winnings were not taxable in 1996 because, inter alia,
he was employed by the Consulate General of Nigeria when he won
the lottery. Following a concession by petitioner, the issues
for decision are:
1. Whether petitioner bears the burden of proof. We hold
that he does.
2. Whether petitioner constructively received all of his
lottery winnings in 1989. We hold that he did not.
3. Whether petitioner may exclude the lottery winnings he
received in 1996 because he was employed by the Consulate General
of Nigeria in 1989 when he won the lottery. We hold that he may
not.
4. Whether petitioner had a $4,237 net operating loss
carried over to 1996. We hold that he did not.
5. Whether petitioner is liable for the accuracy-related
penalty under section 6662 for 1996. We hold that he is not to
the extent described below.
Unless otherwise provided, section references are to the
Internal Revenue Code in effect for the applicable years, and
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