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Oldsmobile Cadillac, Inc. v. Commissioner, T.C. Memo. 1995-538
(brain tumor did not prevent finding of fraud when other indicia
such as falsified records, disallowed deductions, use of a
corporation to disguise personal expenses as business expenses
proved fraud), or drug use--even drug addiction; see Maniloff v.
Commissioner, T.C. Memo. 1991-554 (testimony of extensive drug
use insufficient to rebut other evidence showing participation in
fraudulent and illegal activities); Yocum v. Commissioner, T.C.
Memo. 1985-447 (drug addiction insufficient to rebut fraudulent
intent of taxpayer who engaged in drug smuggling); Chaffin v.
Commissioner, T.C. Memo. 1983-394 (drinking problem did not
preclude forming fraudulent intent).
Petitioners presented no psychiatric testimony or other
evidence of mental impairment caused by drug addiction that
prevented Mark from forming the requisite intent. However, the
record is replete with anecdotal evidence that drug abuse played
a destructive role in Mark's life long before the years in issue
and that it continued throughout those years. Marla testified
about many of these episodes and about her role in helping Mark
keep his job, which provided their sole source of income, while
Marla tended--as best she could--to their family life.
Against this background of Mark's drug abuse and
petitioners' efforts to cope with it, respondent contends that
Mark's failure to file income tax returns, which resulted in his
pleading guilty under section 7203 for willful failure to file a
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