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Petitioner was a high school graduate and an electrician. He
knew of his obligation to file and pay tax. He filed tax returns
before 1981, but did not file returns, pay the tax he owed, or
rely on tax professionals for the years in issue until after he
learned that he was under investigation for possible criminal tax
violations.
Petitioner also cites Danenberg v. Commissioner, 73 T.C. 370
(1979). In Danenberg, the taxpayers were farmers and were
heavily indebted to a bank. They sold six lots to third parties.
The bank canceled their debt. The Commissioner determined that
the taxpayers were liable for the addition to tax for fraud
because they did not report any gain on the sale of the six lots.
We held that the taxpayers were not liable for fraud because a
person who is not an expert in tax law may not have understood
the tax consequences of the transfer of the six lots. Id. at
393-394. That case is distinguishable from the present case
because petitioner’s income tax return did not involve complex
facts or issues; most of petitioner's income was from wages.
6. Conclusion
We conclude that respondent has shown both by clear and
convincing direct evidence, and clear and convincing
circumstantial evidence, that petitioner is liable for the
addition to tax for fraud for 1985, 1986, and 1987.
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