Alton C. Bingham - Page 2

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          for the addition to tax under section 6653(b)(2) of 50 percent of           
          the interest payable on the entire deficiency.                              
               Petitioner was a certified public accountant in 1984.  He              
          was convicted of forgery and filing a false tax return relating             
          to four Federal income tax refund checks totaling $195,489 issued           
          to clients.  He was acquitted of embezzling $676,721 from a                 
          client trust fund.  The issues for decision are:                            
               1.   Whether petitioner is collaterally estopped from                  
          denying that he received but failed to report a substantial                 
          amount of income on his 1984 return from Federal income tax                 
          refund checks payable to his clients.  We hold that he is, and              
          that he is liable for income tax on $195,489 from those checks.             
               2.  Whether petitioner is liable for income tax on $676,721            
          that he received in 1984 as a trustee for clients.  We hold that            
          he is.                                                                      
               3.  Whether petitioner is liable for the addition to tax               
          for fraud under section 6653(b) for 1984.  We hold that he                  
          committed fraud as to the amount attributable to his handling of            
          the refund checks, but that he did not commit fraud for the                 
          amount of clients' land sale proceeds he received as a trustee.             
               4.  Whether petitioner is liable for the addition to tax               
          for substantial understatement of income tax under section                  
          6661(a) for 1984.  We hold that he is.                                      








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