- 132 -
We conclude, and we have found, that petitioner set Betsy’s and
Ben’s salaries from the Sley Corporations, at least up to early
1986. Petitioner had a substantial degree of control over many
matters at the Sley Corporations. The transparent falseness of
petitioner’s contentions that he did not participate in the
decisions and that he did not know who made the decisions as to
Betsy’s and Ben’s salaries is itself an indicator of petitioner’s
fraudulent intent. Bahoric v. Commissioner, 363 F.2d at 153-154;
Boyett v. Commissioner, 204 F.2d at 208.
On brief petitioner lauds Baybrook’s and Berger’s
qualifications and abilities, and declares his reliance on them
to (1) assure the accuracy of his and Betsy’s, and the Sley
Corporations’ tax returns, and (2) determine the amounts of
Betsy’s dividends.
A taxpayer’s reliance on his or her accountant to prepare
accurate returns may indicate an absence of fraudulent intent.
Marinzulich v. Commissioner, 31 T.C. 487, 492 (1958). This is
so, however, only where the accountant has been supplied with all
the information necessary to prepare the returns accurately.
Scallen v. Commissioner, 877 F.2d at 1371; Foster v.
32(...continued)
eliminated the impossible, whatever remains,
however improbable, must be the truth?
[Emphasis in original.]
Doyle, “The Sign of Four”, Sherlock Holmes: The Complete
Novels and Stories (vol. l) 107, 139 (Bantam Books 1986).
Page: Previous 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 NextLast modified: May 25, 2011