- 34 -34
Supreme Court has defined "willfully", as used in section
7206(1), as "a voluntary, intentional violation of a known legal
duty." United States v. Pomponio, 429 U.S. 10, 12 (1976). We
think Ferrentino's intentional filing of a false tax return for
1988 is strong indicia of fraudulent intent with respect to the
1988 taxable year.
The failure to provide tax return preparers with complete
and accurate information is also an indication of fraud.
Witkowski determined AJF's gross income from AJF's cash receipts
journal. AJF's books and records did not disclose the fuel
reimbursement checks from the J.C. Penney distribution centers,
nor did they disclose the delivery service checks from Custom
Decorating. Ferrentino knew that AJF's corporate income was
determined by deposits to its operating account. He also knew
that by not depositing the Custom Decorating and fuel
reimbursement checks, AJF's corporate tax returns would not
report these amounts. Under these circumstances, Ferrentino's
failure to provide accurate information to Witkowski is strong
indicia of fraud with the intent to evade tax.
Petitioners' failure to maintain adequate books and records
of alleged casual labor is further evidence of fraudulent intent.
See Spies v. United States, 317 U.S. 492, 500 (1943);
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