Patricia G. McCulley - Page 12

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          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           

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