- 57 -
Chemical Traders paid for petitioner's stock investments in at
least the following amounts: $83,500 in 1964, $20,635 in 1965,
$153,035 in 1966, $128,007 in 1967, $2,007 in 1968, and $8,350
in 1969. Petitioner did not report his receipt from Polymer of
checks made out to cash. Resyn paid personal benefits for
petitioners of at least $261,789 in 1967, $431,592 in 1968, and
$341,725 in 1969 (total for those 3 years is $1,035,106).
Petitioners did not report those amounts.
We conclude that respondent has proven by clear and
convincing evidence that petitioner diverted funds from Resyn to
himself using the Polymer and Chemical Traders accounts from 1964
to 1970 and did not report them. P.R. Farms, Inc. v.
Commissioner, 820 F.2d 1084 (9th Cir. 1987), affg. T.C. Memo.
1984-549; Worcester v. Commissioner, 370 F.2d 713, 715 (1st Cir.
1966), affg. in part and vacating and remanding in part T.C.
Memo. 1965-199; Biltmore Homes, Inc. v. Commissioner, supra at
340-341.
3. Fraudulent Intent
Respondent must prove by clear and convincing evidence
that petitioner had fraudulent intent. Parks v. Commissioner,
supra at 664. For purposes of section 6653(b), fraud means
actual, intentional wrongdoing, Mitchell v. Commissioner, 118
F.2d 308, 310 (5th Cir. 1941), revg. 40 B.T.A. 424 (1939), or the
intentional commission of an act for the specific purpose of
evading a tax believed to be owing, Webb v. Commissioner, 394
Page: Previous 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 NextLast modified: May 25, 2011