John Wadsworth - Page 17

                                       - 17 -                                         
          supra.                                                                      
               Furthermore, in this case, as in Edwards, respondent did               
          not, in any manner, at the administrative or litigation phases of           
          this case, suggest any criminal investigative activities                    
          pertaining to petitioner for the years in issue.  We, therefore,            
          hold that petitioner's Fifth Amendment claim may not be used as a           
          method of avoiding income taxes due and owing for the years in              
          issue.  As Justice Holmes stated in United States v. Sullivan,              
          274 U.S. 259 (1927), in referring to the defendant in error at              
          264: "He could not draw a conjurer's circle around the whole                
          matter by his own declaration that to write any word upon the               
          government blank would bring him into danger of the law."                   
          Respondent has demonstrated, through the testimony of Ms. Stello,           
          that taxable moneys were forwarded to petitioner through Services           
          during the years in issue.  Although respondent has proven the              
          fact that petitioner received income during the years in issue,             
          she was unable to prove the amount of such income.  Respondent's            
          inability to prove the amount of taxable income received by                 
          petitioner during the years in issue is directly attributable to            
          petitioner's adamant refusal to communicate with respondent in              
          her attempt to determine petitioner's income tax liabilities for            
          the years in issue.  We hold that respondent's determination of             
          petitioner's Federal income tax liabilities for the years in                
          issue must be sustained.                                                    






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011