Leslie Donna Ross v. Commissioner of Internal Revenue

967 F.2d 590 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Leslie Donna ROSS, Petitioner-Appellant, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. No. 90-70135. United States Court of Appeals, Ninth Circuit. Submitted June 8, 1992. * Decided June 16, 1992. Before JAMES R. BROWNING, PREGERSON and RYMER, Circuit Judges. 1 MEMORANDUM ** 2 During the tax year 1981, when Leslie Ross was employed serving cocktails at the Golden Nugget, an Atlantic City, New Jersey casino, the IRS conducted an undercover surveillance operation at several Atlantic City casinos including the Golden Nugget. Agents observed cocktail servers for half-hour periods and recorded the amount of tips they received. The data collected was then statistically analyzed to determine the average hourly tip rate. By multiplying the rate by the number of hours Ross worked in 1981, the IRS determined that she earned $15,206 in tip income rather than the $5,745 she reported. Ross filed a petition in the…