-25-
398 F.2d 1002, 1004-1005 (3d Cir. 1968) (convincing affirmative
indication of intent to defraud exists where taxpayer repeatedly
fails to file and has no reasonable basis for believing that
taxes were not owed); Powell v. Granquist, supra at 60-61
(knowingly refusing to file returns for 9 years seen to be of
equal persuasiveness in proving fraudulent intent as actually
filing false returns).
Because petitioner (1) filed income tax returns for 1973 and
1974; (2) filed "tax protester" returns for 1975 and 1976; (3)
contested his 1975 tax liability before this Court; and (4) was
convicted in 1980 of willful failure to file for 1976 and 1977,
petitioner was undoubtedly aware, with respect to each of the
years 1989-92, that he was required to file an income tax return
if he had taxable income. Indeed, petitioner's 1980 letter to
the U.S. probation officer acknowledges that the tax laws require
individuals to file income tax returns and that they admit of no
exception with respect to petitioner.
With respect to petitioner's knowledge of his taxable income
for 1989-92, petitioner worked as a plumber and had substantial
gross receipts from his plumbing business in each of those years.
In addition, petitioner's petition admitted--and petitioner's own
witness estimated--that petitioner had substantial taxable income
from his business in each of the years 1989-92. This is
compelling evidence that petitioner knew he had taxable income,
and was not exempt from the filing requirement, with respect to
each of the years 1989-92.
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