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After concessions, the issue for decision is whether petitioner’s
failure to file tax returns was due to fraud. Unless otherwise
indicated, all section references are to the Internal Revenue
Code in effect for the years in issue, and all Rule references
are to the Tax Court Rules of Practice and Procedure.
Background
Petitioner resided in Sarasota, Florida, at the time that he
filed his petition in this case. The petition was filed by
petitioner, pro se, and set forth various frivolous tax protester
arguments. It was followed by frivolous motions. After the case
was set for trial, petitioner employed counsel and filed
delinquent Federal income tax returns for the years in issue.
Petitioner, through counsel, also entered into a Stipulation of
Settlement in which the parties agreed to reduced deficiencies
and additions to tax under section 6654.
In the answer to the petition, respondent alleged various
facts in support of the determination that petitioner’s failure
to file tax returns and underpayment of tax for the years in
issue was due to fraud. Petitioner failed to file a reply
notwithstanding a motion by respondent under Rule 37(c), and the
matters set forth in respondent’s answer are deemed admitted for
purposes of this case. Respondent then filed a motion for
summary judgment, which was set for hearing at the time of trial.
Petitioner was permitted to testify with respect to the claim of
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Last modified: May 25, 2011