denied, 429 U.S. 920, 97 S. Ct. 317 (1976),[1] was a case decided before the United States Court of Appeals for the Ninth Circuit which dealt with the question of whether tips (or "tokes") to casino dealers were taxable as income to the dealers under Internal Revenue Code section 61[2] or, alternatively, nontaxable gifts under Internal Revenue Code section 102(a).

[5] The issue in this case was whether the trial court erred in such "findings of fact" that led to the determination of holding that the tips to dealers were gifts and not income for federal tax purposes.

The determination of the dominant reason that explains the player's action in making the transfer was a matter of law for the lower court that would not be reversed because it was not clearly erroneous.

The determination that such dominant reason requires tax treatment as a gift is one of law, to which the appeals court does not owe deference.

While the giver's intention can be difficult to ascertain, objective factors like the regularity, division, and amount of tips are less subjective.