- 11 - Petitioners’ Sophistication The sophistication, education, and intelligence of the taxpayer are relevant to determining fraudulent intent. Niedringhaus v. Commissioner, 99 T.C. 202, 211 (1992); Stephenson v. Commissioner, supra at 1006; Iley v. Commissioner, 19 T.C. 631, 635 (1952). There is no evidence suggesting that Vernon or Janet had any training in accounting, tax planning, or tax return preparation. They both have a high school education, and Vernon attended only one semester of junior college. Petitioners’ Credibility Respondent repeatedly claims that petitioners’ contentions are merely supported by their self-serving testimony. We disagree. Several witnesses corroborated Vernon and Janet’s testimony. This included establishing: (1) TECO’s bookkeepers coded TECO’s checks, and when the bookkeepers were uncertain about how to code a check, they let Mr. Allison code the checks; (2) TECO checks were paid to Vernon so he could purchase business items for TECO in cash in order to get better prices; (3) Vernon conducted TECO business outside the office, including at home and in a separate structure (home office) located on the same property as Vernon and Janet’s residence during the years in issue; (4) trips to Las Vegas, Nevada, were business related; (5) hunting trips were business related; (6) a country club membership was used for business related events; (7) a tractor was used at TECO for business purposes; and (8) Vernon was veryPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011