Gerald A. Sadler - Page 1

                                   113 T.C. No. 4                                     

                               UNITED STATES TAX COURT                                

                           GERALD A. SADLER, Petitioner v.                            
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 1046-98.                     Filed July 29, 1999.           

                    P, a tax attorney, was the president and sole                     
               shareholder of six corporations.  P prepared his own                   
               Forms W-2 for 1989 and 1990 from these corporations.                   
               The Forms W-2 listed large amounts of Federal income                   
               tax withheld.  The corporations did not deposit with                   
               the IRS or withhold any Federal income taxes on the                    
               wages earned by P.  On his tax returns for 1989 and                    
               1990, P reported the correct tax imposed under subtitle                
               A; however, P also reported as withholdings the amounts                
               listed on the false Forms W-2.                                         
                    Held:  P had an "underpayment" of tax for 1989 and                
               1990.  See sec. 6664(a), I.R.C.; sec. 1.6664-2, Income                 
               Tax Regs.                                                              
                    Held, further, P is liable for the fraud penalty                  
               for 1989 and 1990.                                                     
                    Held, further, the periods of limitation on                       
               assessment for 1989 and 1990 did not expire.                           

Page:   1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011