Manuel and Margaret Karcho - Page 30

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          based on the source of receipts.  Also, among the records seized            
          by respondent’s agents was an adding machine tape on which Mrs.             
          Karcho had labeled the unreported monthly cash tallies as “pocket           
               We hold that respondent has established by clear and                   
          convincing evidence that the underpayments in each of the years             
          in issue are attributable to the fraud of each petitioner and               
          that petitioners have not established that any portion of such              
          underpayments is not attributable to fraud.  Accordingly, the               
          period for assessment with regards to those years remains open.             
          See sec. 6501(c)(1); Sisson v. Commissioner, T.C. Memo. 1994-545            
          (fraud for purposes of section 6501(c) is the same as fraud for             
          penalty purposes), affd. without published opinion 108 F.3d 339             
          (9th Cir. 1996).                                                            
               We have considered all of petitioners’ remaining arguments             
          and, to the extent not addressed herein, find them meritless.               
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                             under Rule 155.                          

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