Flamingo Resort, Inc. v. United States

The taxpayer, Flamingo Resort, Inc. (Flamingo), appeals from summary judgment by the district court in favor of the government. See Flamingo Resort, Inc. v. United States, 485 F.Supp. 926 (D.Nev. 1980). The action was instituted initially by Flamingo to recover monies, plus interest, paid by it pursuant to the assertion by the Commissioner of Internal Revenue (Commissioner) of a deficiency with respect to Flamingo’s taxable period ending December 31, 1967.

Flamingo sought summary judgment with respect to that portion of the assessed deficiency that related exclusively to certain of the casino’s receivables known as “pit markers.” Flamingo’s motion sought determination of the question of liability only, with the amount subject to later determination. The government also moved for summary judgment with respect to the entire amount in dispute.

The district court, after concluding that the one possible triable issue of material fact would be relevant only if legal enforceability of gambling debts was necessary for the accrual of the receivables in question, granted the government’s motion for summary judgment on the ground that accrual was proper despite the absence of legal…