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command over the property or the enjoyment of its economic
benefits that marks the real owner. Hang v. Commissioner, supra.
The accounts were created with petitioner's personal funds.
When a parent holds an account in joint tenancy with his child,
or as guardian for his child, income from the account that is
used to support the child is taxable to the person who is legally
liable for such support. Garriss Inv. Corp. v. Commissioner,
T.C. Memo. 1982-38. Courts apply strict scrutiny to transactions
between related parties to prevent the shifting of income into
lower tax brackets. Doxey v. Commissioner, T.C. Memo. 1991-150,
affd. without published opinion 979 F.2d 1534 (5th Cir. 1992).
Mr. Beretta did not show whether he had a support obligation for
his daughter or that he was not the beneficial owner of the
accounts. We also find it persuasive that petitioner claimed
losses from the accounts on his tax returns, while the income
from the accounts was reported on his daughter's returns.
Accordingly, Mr. Beretta is taxable on the dividend income
credited to the accounts during the taxable years at issue.
Issue 3. Income Tax Refund
The next issue for our consideration is whether petitioner
received $2,000 in unreported income in connection with his
preparation of a false U.S. Individual Income Tax Return, Form
1040, in the name of Chris Arias. Mr. Beretta and William Arias
participated in a scheme to defraud the U.S. Government by
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