Robert E. Iles and Monica M. Iles - Page 43

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          Commissioner, 328 F.2d 147, 150 (7th Cir. 1964), affg. 37 T.C.              
          703 (1962); Stone v. Commissioner, 56 T.C. at 224.                          
               In order to establish fraud as to Robert, respondent must              
          show that Robert intended to evade taxes, which he knew or                  
          believed were owed, by conduct intended to conceal, mislead, or             
          otherwise prevent the collection of taxes.  E.g., Webb v.                   
          Commissioner, 394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo.           
          1966-81; Powell v. Granquist, 252 F.2d 56, 60 (9th Cir. 1958);              
          Danenberg v. Commissioner, 73 T.C. 370, 393 (1979); McGee v.                
          Commissioner, 61 T.C. 249, 256-257 (1973), affd. 519 F.2d 1121              
          (5th Cir. 1975).  This intent may be inferred from circumstantial           
          evidence, Powell v. Granquist, 252 F.2d at 61; Gajewski v.                  
          Commissioner, 67 T.C. 181, 200 (1976), affd. without published              
          opinion 578 F.2d 1383 (8th Cir. 1978), including the                        
          implausibility of Robert's explanations, Bradford v.                        
          Commissioner, 796 F.2d 303, 307 (9th Cir. 1986) (and cases                  
          therein cited), affg. T.C. Memo. 1984-601; Boyett v.                        
          Commissioner, 204 F.2d 205, 208 (5th Cir. 1953), affg. a                    
          Memorandum Opinion of this Court dated Mar. 14, 1951.                       
               We consider first whether petitioners have an underpayment             
          of tax for one or more of the years in issue, and then we                   
          consider whether any part of any underpayment is due to Robert's            
          fraud.                                                                      







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