- 12 -
Las Vegas Hilton employees; however, he did pay his bussers $4
per day. Respondent appears to have reduced petitioner’s tips in
order to account for this “bus money”. However, the amount of
the reduction ($147) does not seem reasonable in view of the fact
that he worked at least 30 hours a week throughout the year.
Although the record does not establish the exact number of days
that petitioner worked in 2002, we think that an additional
reduction of $653 is reasonable under the circumstances.9 See
Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930).
Conclusion
As previously stated, petitioner did not offer at trial any
contemporaneous records of his tip income for 2002. In the
absence of any such records, we have reviewed respondent’s
methodology in reconstructing petitioner’s tip income. Except
for the relatively modest adjustment discussed in the preceding
paragraph, we think that respondent’s methodology is reasonable.
In any event, petitioner has not shown it to be otherwise.
Accordingly, except as indicated, we sustain respondent’s tip
income determination.
Reviewed and adopted as the report of the Small Tax Case
Division.
9 Derived as follows: 4 days/week x 50 weeks x $4/day -
$147 = $653.
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