Adnan Al Kaissy - Page 25

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            this section does not establish that a portion of the                                      
            underpayment by petitioner in the year involved is due to fraud                            
            with intent to evade tax under section 6653(b).  Wright v.                                 
            Commissioner, 84 T.C. 636 (1985).  As we stated in the Wright                              
            case 84 T.C. at 643-644, a conviction for willful falsification,                           
            under section 7206(1), while not dispositive, will be one of the                           
            facts to be considered in a trial on the merits of a case.                                 
            However, there remained in Wright a genuine issue of material                              
            fact as to whether the reason for the underpayments was an                                 
            attempt to evade taxes.  We stated that the issue of intent,                               
            adequately raised by the taxpayer in that case, was clearly one                            
            requiring a trial on the merits.                                                           
                  Here, we have considered petitioner's conviction on a plea                           
            of guilty to a violation of section 7206(1) with respect to his                            
            1983 return, but have concluded that this evidence alone is not                            
            sufficient to be clear and convincing that a part of the                                   
            underpayment of tax for 1983 was due to fraud with intent to                               
            evade tax.                                                                                 
                  While petitioner attended college for some years, and even                           
            ultimately received a master's degree in education, he primarily                           
            was an athlete during his college years, and did not have courses                          
            that would qualify him to have a complete understanding of                                 
            business and tax matters.  His business associates were other                              
            wrestlers.  The wrestlers understood that from an economic                                 

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Last modified: May 25, 2011