Peter S. Pau and Susanna H. Pau - Page 25

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          Commissioner, 781 F.2d at 1568; Paschal v. Commissioner, T.C.               
          Memo. 1994-380, affd. 76 AFTR2d 95-7975, 96-1 USTC par. 50,013              
          (3d Cir. 1995); Morris v. Commissioner, T.C. Memo. 1992-635,                
          affd. without published opinion 15 F.3d 1079 (5th Cir. 1994); cf.           
          Ross Glove Co. v. Commissioner, 60 T.C. 569, 608 (1973) (no fraud           
          demonstrated where evidence did not show the taxpayer ignored or            
          misinformed his attorneys or accountants); Marinzulich v.                   
          Commissioner, 31 T.C. 487, 492 (1958) (no fraud proven where the            
          taxpayers' accountant had complete access to all the information            
          bearing on their tax liability); Dagon v. Commissioner, T.C.                
          Memo. 1984-138 (no fraud where the taxpayer did not conceal any             
          records from his tax return preparer); Compton v. Commissioner,             
          T.C. Memo. 1983-647 (no fraud where the taxpayer turned over                
          sufficient records to his tax preparer for her to accurately                
          determine his tax liability for the years in issue).  We agree              
          with respondent that the only rationale for petitioners' failure            
          to disclose the income to the accountant was so that they could             
          avoid the accountant's duty to report the income.                           
               5.  Failure To Cooperate                                               
               Petitioners did not cooperate with respondent's agent                  
          initially, canceling appointments, refusing to extend the period            
          of limitations, and failing to produce records and books used to            
          prepare their Schedules C and their tax return.  Using the                  
          limited information available to him, the agent prepared, and               
          respondent issued, the notice of deficiency to petitioners.  Cf.            

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