- 28 -
to fraud. We stated that the record did not "show any
affirmative acts of concealment or misrepresentation so as to
constitute fraud, such as filing false information or attempting
to mislead respondent." Id.
Unlike the taxpayer in Nelon v. Commissioner, supra,
petitioner is an astute businessperson possessing adequate skill
in maintaining adequate books and records. Furthermore,
petitioner acknowledges that she is under an obligation to file
returns and pay Federal income taxes. Petitioner's income is not
easy to trace, but rather difficult to establish due to her
surreptitious use of secret accounts and nominee corporations.
Therefore, unlike Nelon v. Commissioner, supra, the record here
contains ample evidence of affirmative acts of concealment so as
to constitute fraud.
Overall, in her extended testimony before us, petitioner
impressed us as being a strong-minded businesswoman fully capable
of managing her affairs, including the filing of accurate and
timely tax returns.
Based on the foregoing, we hold that respondent has
established by clear and convincing evidence that at least part
of petitioner's underpayment for the taxable years 1987 and 1988
is attributable to fraud with the intent to evade tax. We
further hold that petitioner's failure to file her 1989 and 1990
tax returns is attributable to fraud because petitioner's failure
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NextLast modified: May 25, 2011