James Alan Price - Page 18

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               fraud under section 6653 “is intentional wrongdoing on                 
               the part of the taxpayer to avoid a tax known to be                    
               owing.”  Akland v. Commissioner, 767 F.2d 618, 621 (9th                
               Cir. 1985).  By filing fraudulent W-4 forms and failing                
               to file tax returns, appellant succeeded in avoiding                   
               paying taxes for a number of years.  The fact that he                  
               told the Internal Revenue Service that he was evading                  
               taxes does not make it any less fraudulent.  * * *                     
          Granado v. Commissioner, supra at 93.  We follow Granado v.                 
          Commissioner, supra.  Golsen v. Commissioner, 445 F.2d 985 (10th            
          Cir. 1971), affg. 54 T.C. 742 (1970).  We conclude that the fact            
          that petitioner sent letters to respondent raising frivolous                
          constitutional and other legal questions about filing tax returns           
          does not preclude a finding of fraud.  Cloutier v. Commissioner,            
          T.C. Memo. 1994-558.                                                        
               Petitioner contends that respondent entrapped him by not               
          responding to his letters.  We disagree.  We do not believe that            
          petitioner wrote those letters in good faith.  Respondent put               
          petitioner on notice that he was wrong before the years in issue            
          when respondent assessed penalties against petitioner for filing            
          false Forms W-4 in 1982.                                                    
               5.   Other Cases on Which Petitioner Relies                            
               Petitioner contends that he is like the taxpayer in                    
          Marinzulich v. Commissioner, 31 T.C. 487 (1958), whose lack of              
          education negated fraudulent intent.  We disagree.  The taxpayer            
          in Marinzulich had a third grade education, lacked familiarity              
          with income tax laws, used a tax return preparer, filed returns             
          for the years in issue, and did not falsify any records.                    




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