- 12 -
303, 307-308 (9th Cir. 1986), affg. T.C. Memo. 1984-601; Parks v.
Commissioner, supra at 664-665. Although no single factor is
necessarily sufficient to establish fraud, the existence of
several indicia constitutes persuasive circumstantial evidence of
fraud. Petzoldt v. Commissioner, supra at 700; see Bradford v.
Commissioner, supra at 307.
The record in this case contains indicia of fraud by
petitioner. When petitioner filed his returns for 1990 and 1991,
he knew and understood that each such return understated his
income for each such year. In addition, petitioner did not file
returns for his taxable years 1990 and 1991 until after respon-
dent commenced an examination of those returns because he did not
want to pay the respective tax due for such years. Moreover,
during respondent’s examinations of petitioner and of Duncan &
Associates with respect to their respective taxable years 1990
and 1991, petitioner fraudulently and corruptly obstructed and
impeded, and endeavored to obstruct and impede, the due adminis-
tration of the Code by knowingly creating and causing the cre-
ation of false and fraudulent documents for the purpose of
obstructing and impeding respondent’s examinations of petitioner
and of Duncan & Associates with respect to their respective
taxable years 1990 and 1991 and for the purpose of concealing
from respondent the falsity of petitioner’s return for each of
his taxable years 1990 and 1991 and of Duncan & Associates’
return for each such year. In addition, although petitioner was
married at the end of his taxable years 1990 and 1991, petitioner
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011