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1984 and 1985 corporate Federal income tax returns, and that
Elvin is not sophisticated in tax matters.
In support of the contention that both Elvin and YOC filed
fraudulent Federal income tax returns for the years in issue,
respondent argues that the correct taxable income on each of the
individual and corporate tax returns in question was
significantly underreported, that Elvin had the mental capacity
in 1983 through 1986 to form fraudulent intent, that Elvin for
1983 was convicted under section 7201 of Federal income tax
evasion and under section 7206(2) of filing a false and
fraudulent corporate Federal income tax return for YOC, that the
same activities and course of conduct that were present in 1983
and that formed the factual basis for Elvin's convictions for
1983 were continued by Elvin in 1984, 1985, and 1986, that Elvin
followed a pattern of consistent underreporting of income, that
Elvin caused YOC to pay many of his personal expenses and to
purchase personal assets, and that YOC followed a pattern of
consistent underreporting of income.
Based on our many findings and conclusions herein sustaining
respondent's substantive tax adjustments, it is clear that
respondent has shown that very substantial underreporting of
income and underpayments of Federal income taxes occurred on
Elvin's and on YOC's Federal income tax returns for the years at
issue.
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