- 18 - Furthermore, petitioner is deemed to have admitted that his failure to produce records "was fraudulent with the intent to evade the payment of taxes". Third, failing to file tax returns is evidence of fraud. "[T]he mere failure to file tax returns, even over an extended period of time, does not per se establish fraud * * * however, the failure to file tax returns is persuasive circumstantial evidence of fraud." Marsellus v. Commissioner, 544 F.2d 883 (5th Cir. 1977), affg. T.C. Memo. 1975-368. Petitioner is deemed to have admitted that he failed to file Federal income tax returns for 1987 through 1989. In addition, petitioner's prior filings of joint income tax returns for 1983 through 1986 indicate petitioner's knowledge of the yearly requirement to file and further support a finding that petitioner possessed fraudulent intent in failing to file returns for the years in issue. In conclusion, petitioner's deemed admissions support a finding of fraud. Respondent has established by clear and convincing evidence that petitioner acted fraudulently in failing to file returns and report income for 1987 through 1989. An appropriate order will be issued and decision will be entered.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Last modified: May 25, 2011