Gaylon L. Harrell - Page 16

                                        -16-                                          
               We have concluded that petitioner’s 1993 tax liability                 
          ($6,374)5 is almost $3,000 more than his 1993 income tax                    
          withholding ($3,389.83).  Thus, if respondent had not proceeded             
          against petitioner, then petitioner would have evaded almost half           
          his tax liability.                                                          
               From the foregoing, we conclude, and we have found, that               
          petitioner’s failure to timely file his income tax return for               
          1993 was fraudulent.                                                        
               By now, respondent is aware of petitioner’s refusals to obey           
          the income tax laws.  See supra table 1.  This sort of                      
          “disclosure” does not affect our conclusions as to civil tax                
          fraud.  Edelson v. Commissioner, 829 F.2d 828, 832-833 (9th Cir.            
          1987), affg. T.C. Memo 1986-223; Granado v. Commissioner, 792               
          F.2d 91, 93-94 (7th Cir. 1986), affg. T.C. Memo. 1985-237.  But             
          see Raley v. Commissioner, 676 F.2d 980 (3d Cir. 1982), revg.               
          T.C. Memo. 1980-571.6                                                       




               5    At trial there was some testimony as to petitioner’s              
          wife.  It was not clear whether petitioner was married in 1993.             
          In the notice of deficiency respondent determined that petitioner           
          was single in 1993.  If petitioner were married in 1993, then his           
          tax liability would have been greater than $6,374.                          
               6    The instant case is appealable to the Court of Appeals            
          for the Seventh Circuit, which has stated that “we reject the               
          analysis of the Third Circuit in Raley v. Commissioner, 676 F.2d            
          980 (3d Cir. 1982).”   Granado v. Commissioner, 792 F.2d 91, 92             
          (7th Cir. 1986), affg. T.C. Memo. 1985-237.  See Golsen v.                  
          Commissioner, 54 T.C. 742, 756-758 (1970), affd. 445 F.2d 985               
          (10th Cir. 1971).                                                           




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