Lance Brown - Page 12

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          examination of petitioner's books and records occurred in this              
          case, we conclude that petitioner never timely objected thereto,            
          and petitioner thereby waived his rights under section 7605(b).             
               Relying on United States v. Tweel, 550 F.2d 297 (5th Cir.              
          1977) and United States v. Grunewald, 987 F.2d 531 (8th Cir.                
          1993), petitioner argues that respondent’s revenue agent unduly             
          delayed in making the fraud referral to respondent’s Criminal               
          Investigation Division, that petitioner's Fourth and Fifth                  
          Amendment rights were thereby violated, and that the fraud                  
          additions to tax should be rejected.                                        
               We disagree.  Respondent’s continued investigation of                  
          petitioner after the revenue agent initially suspected fraud did            
          not violate petitioner's constitutional rights.  See United                 
          States v. Grunewald, supra.  There is no credible evidence in the           
          record that would support a finding that respondent’s revenue               
          agent improperly received information as a result of any                    
          misrepresentations or improper conduct by the revenue agent.                
               Based on the evidence before us, we conclude that petitioner           
          fraudulently underreported his Federal income taxes for 1986 and            
          1987 and that petitioner is liable for the fraud additions to tax           
          for 1986 and 1987.                                                          

                                                   Decision will be entered           
                                             under Rule 155.                          

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