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Respondent also determined that Mr. Allen is liable for
section 6651(f) additions to tax for fraudulently failing to file
his 1992, 1993, and 1994 Federal income tax returns. Respondent
must establish, by clear and convincing evidence, that Mr.
Allen's failure to file was an attempt to evade tax. See sec.
7454(a); Clayton v. Commissioner, 102 T.C. 632, 646, 651-653
(1994). A taxpayer's attempts to conceal income, mislead the
Internal Revenue Service, or prevent the collection of income tax
may establish the requisite fraudulent intent. See Rowlee v.
Commissioner, 80 T.C. 1111, 1123 (1983).
Mr. Allen was aware of his Federal income tax return filing
obligations, but failed to file his 1992, 1993, and 1994 returns.
In addition, Mr. Allen attempted to conceal his income-producing
activities by encouraging his bank not to comply with
respondent's summons, sending respondent a false affidavit, and
refusing to provide respondent with relevant information.
Moreover, Mr. Allen attempted to evade tax when he failed to file
his returns. Accordingly, he is liable for the section 6651(f)
additions to tax relating to 1992, 1993, and 1994.
At trial, respondent made an oral motion for the Court to
penalize Mr. Allen, pursuant to section 6673(a), for engaging in
dilatory tactics and asserting frivolous arguments. We conclude
that such a penalty is inappropriate in this case and deny
respondent's request.
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Last modified: May 25, 2011