- 9 -
that petitioner concealed income and assets from his tax return
preparers and that he made false and misleading statements to IRS
agents investigating his tax liability. Petitioner’s failure to
come forward with any nonfraudulent explanation negating the
evidence against him justifies the inference that there is no
such explanation. Brooks v. Commissioner, 82 T.C. 413, 432-433
(1984), affd. without published opinion 772 F.2d 910 (9th Cir.
1985). We have found that petitioner’s purpose in placing funds
in church accounts was to avoid paying income tax due on the
proceeds of sale of his stock in Kentucky Wood and the sale of
the corporation’s partnership interest in Kywood. We are
convinced by the evidence that petitioner knew that he could not
avoid taxation merely by placing funds in the names of churches
that he created for that purpose. His attempts to do so
establish fraudulent intent. See Stephenson v. Commissioner, 79
T.C. 995, 1006 (1982), affd. 748 F.2d 331 (6th Cir. 1984). In
any event, for 1989, petitioner is estopped by his criminal
conviction from denying that the underpayment for that year is
due to fraud. Amos v. Commissioner, 360 F.2d 358 (4th Cir.
1965), affg. 43 T.C. 50 (1964); see Tomlinson v. Lefkowitz, 334
F.2d 262 (5th Cir. 1964).
Upon review of the entire record, we conclude that
respondent has satisfied her burden of proving that petitioner
underpaid his taxes for each of the years in issue and that the
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011