Jacob and Yehiella Kalo - Page 15

                                                 - 15 -                                                   
            having willfully failed to disclose that he had interests in                                  
            foreign bank accounts.  Although this conviction does not, in and                             
            of itself, establish a fraudulent intent, we consider the crime                               
            as evidence of fraud, especially when combined with other factors                             
            taken from the record as a whole.  Petzoldt v. Commissioner, 92                               
            T.C. 661, 701-702 (1989); McGee v. Commissioner, 61 T.C. 249, 260                             
            (1973), affd. 519 F.2d 1121 (5th Cir. 1975).                                                  
            C.  Conclusion                                                                                
                  We find that respondent has clearly and convincingly proven                             
            fraud on the part of petitioner for all of the years in issue,                                
            and we so hold.  This conclusion is based on the record as a                                  
            whole and reasonable inferences therefrom, taking into account                                
            our determination as to the credibility of petitioner and the                                 
            other witnesses presented at trial.  Petitioner has failed to                                 
            show that any portion of the underpayment was not due to fraud.                               
            Therefore, we sustain respondent's determination that Dr. Kalo is                             
            liable for the fraud additions for 1986 through 1988 and for the                              
            fraud penalty for 1989.                                                                       
                                                              Decision will be entered                    
                                                        under Rule 155.                                   












Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  

Last modified: May 25, 2011