- 15 - the intent element. See Wilson v. Commissioner, T.C. Memo. 1994- 454. Indeed, in McGee v. Commissioner, 61 T.C. 249, 260 (1973), affd. 519 F.2d 1121 (5th Cir. 1975), we stated: it is a fair inference that a man who will misappropriate another's funds to his own use through misrepresentation and concealment will not hesitate to misrepresent and conceal his receipt of those same funds from the Government with the intent to evade tax. Petitioner was convicted of embezzlement in violation of 18 U.S.C. sec. 656, money laundering in violation of 18 U.S.C. sec. 1957, and filing false returns for the years 1992 through 1994 in violation of section 7206(1).4 Convictions for such crimes are highly probative of petitioner’s intent to evade taxes because the activities involve perjury, deceit, breach of fiduciary duty, and concealment of criminal proceeds. See Williams v. Commissioner, T.C. Memo. 1992-153. On the basis of the foregoing, we sustain respondent's determination of the fraud penalty against petitioner for each year in issue. Consistent with our holding on this point, we need not consider respondent's alternative determination that petitioners are liable for accuracy-related penalties for the years in issue. 4 See Wilson v. Commissioner, T.C. Memo. 1994-454 (declaring that convictions under sec. 7206 are highly persuasive evidence of intent to evade taxes); Estate of Sawczak v. Commissioner, T.C. Memo. 1993-210 (same).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011