- 16 - a doctor whose income was consistently and substantially understated, the taxpayer’s reliance on his accountant was a factor in the Court’s holding that the Commissioner failed to clearly and convincingly prove fraud. Zipp v. Commissioner, T.C. Memo. 1998-371. B. Whether There Was a Pattern of Behavior Which Indicates an Intent To Mislead Respondent points out that petitioner, in the process of applying for loans, provided monthly income figures to lenders that reflected that he knew that he was underreporting his income. During 1994, petitioner sought a $5,100 personal loan, and he estimated that his monthly income was $3,200. A few months later petitioner began the process of purchasing a home, and in documents submitted to secure a $140,000 mortgage loan, he estimated that his monthly income was $5,217 on one occasion and $4,137 on another. When the home loan was being finalized, the mortgage company requested copies of petitioner’s 2 prior years’ Federal income tax returns. Petitioner obtained the copies of the returns from his father and provided them to the mortgage company. Unlike the returns filed with respondent, which reported insignificant amounts of net income from the construction business, the copies supplied to the mortgage company reflected annual net income in the low $50,000's. In addition, there were some discrepanciesPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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