- 13 - A. In General The record in this case reflects a general pattern of dereliction, but not one of deceit and fraud. There can be no doubt that petitioner’s reliance upon his father was misplaced and in no way relieved petitioner of his obligation to correctly report his tax liability. Petitioner may not avoid his duty to accurately report by placing the responsibility on an agent. See United States v. Boyle, 469 U.S. 241, 250-251 (1985). There is ample evidence, as observed by his return preparer, that petitioner’s tax records were inaccurate and inadequate and commingled personal and business items. Petitioner knew that his earnings exceeded the $350 received weekly from his father for personal expenses. But petitioner was not aware of the particulars of his tax reporting, including the amount of income reported on his Federal income tax returns. In spite of his laxity and inattention to the administration of his business, petitioner did not intend to evade tax by conduct intended to conceal, mislead, or prevent the collection of tax. Petitioner’s forte was in the operational side of his construction business. He was young and inexperienced regarding the administrative necessities of his business. As a result, petitioner relied exclusively on his father to look after the administrative matters, including tax reporting. Petitioner perfunctorily signed documents, including tax returns, that hisPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011