- 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).
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