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TAXES
UNINCORPORATED BUSINESS TAX
GAMBLING RULED SUBJECT TO UBT
Finance audited records of illegal gambling business and demanded
UBT tax. In 1994 Raymond and Alice Marquez were arrested and charged
with illegal gambling for running an organized numbers game. The Manhattan
District Attorney determined that the Raymond Marquez Organization’s
1993 net profits were $1.4 million. Raymond and Alice pled guilty to an
assortment of charges related to the illegal gambling. Afterwards the
Department of Finance asserted tax deficiencies against Raymond and Alice
Marquez for the years 1990 to 1993 based on an unincorporated business
taxable income of $1.4 million.
On appeal, Tax Appeals Tribunal ALJ Anne Murphy ruled that the Marquez
Organization was an unincorporated business subject to the UBT. The ALJ
found that Raymond had not filed a UBT return or otherwise reported the
Organization’s generated income. The ALJ accepted the $1.4 million
figure, finding that the auditor had used the Organization’s seized
records to arrive at the figure. The ALJ also allowed the imposition of
penalties for Raymond’s failure to file UBT returns and failure to
pay UBT with intent to defraud the City.
Petition of Raymond and Alice Marquez, TAT Det. #97-107, Mar. 8, 2006
(Murphy, ALJ) (Attorneys: David Marquez, for Marquez; Michael A. Cardozo,
Francis Henn, for NYC). CITYADMIN
