- 12 -
schedule an appointment with petitioner, even though she
consistently expressed a willingness to meet.
At trial and in his report, Agent Johnson indicated that
petitioner "withheld bank statements" from the preparers of
petitioner's 1984 and 1985 returns, Patricia Montague (Montague)
and Louis Traylor (Traylor), respectively. However, Montague and
Traylor testified that they never asked petitioner for any bank
records, that she was cooperative and provided them with all of
the tax information that they requested, and that she did not in
any way hinder them in preparing the returns.
Moreover, the evidence specifically rebuts respondent's
claim that petitioner failed to furnish Agent Johnson with her
bank records and that summonses had to be served on petitioner's
banks to obtain them. At trial Agent Johnson himself admitted
that he never asked petitioner for any bank statements, or for
that matter, any other documentary information relating to her
tax liability for the years in issue.
Respondent’s case is based almost entirely on allegations
made by Griffith, petitioner's ex-husband, to Agent Johnnson.8
However, Griffith was not a reliable source. At the time he was
interviewed, Griffith had a strong motive to lie. He and
8 The bias of witnesses giving contradictory evidence must be
considered. See Anderson v. Bessemer City, 470 U.S. 564, 575
(1985); Henson v. Commissioner, 835 F.2d 850, 853 (11th Cir.
1988), affg. in part, revg. in part and remanding T.C. Memo.
1986-303; Ishijima v. Commissioner, T.C. Memo. 1994-353.
Griffith, who was suffering from liver cancer, did not testify at
trial.
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