6 accessions to wealth under the dominion and control of the taxpayer. James v. United States, 366 U.S. 213 (1961); Rutkin v. United States, 343 U.S. 130 (1952). Section 1 imposes a tax on individuals for taxable income received. The liability for the payment of the income tax is ordinarily on the individual receiving the income. Edwards v. Commissioner, 39 T.C. 78 (1962), affd. in part and revd. in part 323 F.2d 751 (9th Cir. 1963). The evidence submitted in this case clearly shows the receipt of the income by petitioners, and in fact they admitted it in the pleadings. Petitioners' argument of a "loan" is not only unsupported by this record, it is clearly contrary to that record, and we find that respondent's determination with respect to unreported income must be sustained. We next consider the correctness of the imposition of additions to tax for fraud on petitioners by respondent. On this matter, the burden of proof is on respondent, Rule 142(b). A failure to file tax returns, without more, is not conclusive proof of fraud, but may be considered in connection with other facts. Stoltzfus v. United States, 398 F.2d 1002, 1004 (3d Cir. 1968); Kotmair v. Commissioner, 86 T.C. 1253, 1260 (1986). Petitioners' entire course of conduct can be relied on to establish a fraudulent intent. Otsuki v. Commissioner, 53 T.C. 96, 106 (1969).Page: Previous 1 2 3 4 5 6 7 8 Next
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