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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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Last modified: May 25, 2011