- 11 - Commissioner, supra at 661; Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983). 2. Underpayment Petitioner concedes that he understated his tax for each of the years in issue. 3. Fraudulent Intent Respondent must prove by clear and convincing evidence that petitioner had fraudulent intent. Parks v. Commissioner, supra at 664. For purposes of section 6653(b), fraud means actual, intentional wrongdoing, Mitchell v. Commissioner, 118 F.2d 308, 310 (5th Cir. 1941), revg. 40 B.T.A. 424 (1939), or the intentional commission of an act for the specific purpose of evading a tax believed to be owing, Webb v. Commissioner, 394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo. 1966-81. a. Direct Evidence of Fraud There is direct evidence of petitioner’s fraud because petitioner admitted in his plea agreement that he tried to evade tax that he knew he owed for 1985, 1986, and 1987. Direct evidence can be sufficient to support a finding of fraudulent intent. Catalfo v. Commissioner, T.C. Memo. 1995-106 (taxpayer’s admissions connected with plea agreement established fraudulent intent); Larson v. Commissioner, T.C. Memo. 1994-302, affd. without published opinion 60 F.3d 830 (8th Cir. 1995) (plea agreement was evidence of fraudulent intent).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011