Abstract
In Zarin v. Commissioner, the United States Court of Appeals for the Third Circuit held that forgiveness of unenforceable gambling debts does not produce taxable income to a gambler. The court held that the requirements of Internal Revenue Code section 108(d) were not satisfied because, under New Jersey law, gambling debts are not enforceable when accumulated contrary to the Casino Control Act, and casino chips do not constitute property. The court further held that the transaction was a disputed debt which, when settled by the debtor, did not produce taxable income.
Recommended Citation
Kulper, Douglas E.
(1991)
"Taxpayer Rolls the Dice and the IRS Craps Out: Forgiveness of Gambling Debts is Not Income on Zarin v. Commissioner,"
Utah Law Review: Vol. 1990:
No.
3, Article 4.
Available at:
https://dc.law.utah.edu/ulr/vol1990/iss3/4