- 7 -
failure to file was an intentional attempt to evade tax believed
to be owing. See sec. 7454(a); Rule 142(b); Clayton v.
Commissioner, 102 T.C. 632, 653 (1994); Gajewski v. Commissioner,
67 T.C. 181, 199 (1976), affd. without published opinion 578 F.2d
1383 (8th Cir. 1978). The existence of fraud is a question of
fact to be resolved upon consideration of the entire record.
Gajewski v. Commissioner, supra at 199-200. Because fraudulent
intent can seldom be established by direct proof, it may be
proved by circumstantial evidence. Clayton v. Commissioner,
supra at 647; Petzoldt v. Commissioner, 92 T.C. 661, 700 (1989).
Petitioner pleaded guilty to five counts of violating
section 7203 for willful failure to file Federal income tax
returns, one count for each taxable year 1990, 1991, 1992, 1993,
and 1994. Willful failure to file, even over an extended time,
does not conclusively establish the fraudulent intent required
under section 6651(f). See Grosshandler v. Commissioner, 75 T.C.
1, 19 (1980); Wilkinson v. Commissioner, T.C. Memo. 1997-410.
Petitioner’s guilty plea, however, is evidence of fraud that,
coupled with other affirmative indications of the requisite
fraudulent intent, warrants imposition of the addition to tax for
fraud. See Grosshandler v. Commissioner, supra.
As evidenced by his admissions in the plea agreement,
petitioner knew that he was required to file a Federal income tax
return for each year in issue, and he willfully failed to do so
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011