Alvin and Alice B. Butchko v. Commissioner of Internal Revenue

Alvin Butchko, the taxpayer, appeals from a judgment of the Tax Court denying him a deduction of $358 claimed as an employee business expense. We affirm the decision of the Tax Court.

The facts have been stipulated by the parties. Taxpayer is a racetrack teller and, during the 1974 racing season, was employed by the California Jockey Club, Tanforan Racing Association, Pacific Racing Association, and the California Capitol Trotting Association. Taxpayer’s job entailed accepting wagers at the various racetracks by selling pari-mutuel tickets. Errors occurred during such sales; if, at the end of the day, taxpayer had collected more money than he should he was considered to have an overage, if less, a shortage.

Taxpayer’s employment was governed by the agreement entered into by his employers and the Pari-Mutuel Employee’s Guild of California, Local 280, Service Employee’s International Union, AFL-CIO (the Agreement). Our decision turns on the relationship created by the Agreement.

Article VI, Section 1 of the Agreement provides:

Specific daily rates of pay were set forth in an attachment to the Agreement.

Article VII, Section 1 imposed an obligation on taxpayer to satisfy…