- 14 - 1993 and 1994, Ms. Witt relied on the information provided by petitioners to prepare those returns. The sophistication, education, and intelligence of the taxpayer are relevant considerations in determining whether a taxpayer has fraudulent intent. See Niedringhaus v. Commissioner, 99 T.C. 202, 211 (1992); Stephenson v. Commissioner, 79 T.C. 995, 1005-1006 (1982), affd. 748 F.2d 331(6th Cir. 1984); Iley v. Commissioner, 19 T.C. 631, 635 (1952). Petitioner was a bank trust officer with a background in accounting. As a bank trust officer with a degree in business administration as well as extensive training in accounting, petitioner was "not a person who could fail to understand what the law requires for him under the circumstances." Halle v. Commissioner, 7 T.C. 245, 250 (1946), affd. 175 F.2d 500 (2d Cir. 1949). Given petitioner's education and work experience, "it asks too much" for the Court to "believe that petitioner had no idea his embezzlement income was taxable." Myers v. Commissioner, T.C. Memo. 1980-262 (bank trust officer must have known embezzled funds were taxable income). Petitioner had the sophistication to know that he was required to report the funds he received from Mrs. Millyard on his return. Petitioner's criminal convictions raise a strong inference that petitioner possessed the willfulness necessary to satisfyPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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