- 19 - d. Intent To Mislead Misleading statements to an investigating agent may be evidence of fraud. Gajewski v. Commissioner, supra at 200. Dr. Rao did mislead the IRS agents when he told them that he received no income directly from patients and that all of his income was from insurance companies or third party providers. e. Credibility of Dr. Rao's Testimony A taxpayer's lack of credibility, inconsistent testimony, or evasiveness are factors in considering the fraud issue. Toussaint v. Commissioner, 743 F.2d at 312. Dr. Rao's testimony was basically consistent and credible. Even if Dr. Rao's testimony is not credible in all respects, we may still be left with no more than a suspicion of fraud. See Jenkins v. Commissioner, T.C. Memo. 1995-563. f. Other Factors Dr. Rao provided his accountant, Mr. Raclaw, with all of the information necessary to compute gross income for his Schedule C business. A taxpayer's reliance upon his accountant to prepare accurate returns may indicate an absence of fraudulent intent. Marinzulich v. Commissioner, 31 T.C. 487, 490 (1958). However, the taxpayer must provide his accountant "with all of the data necessary for maintaining complete and accurate records". Merritt v. Commissioner, 301 F.2d 484, 487 (5th Cir. 1962), affg. T.C. Memo. 1959-172. Dr. Rao willingly provided Mr. Raclaw withPage: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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