- 10 -
Webb v. Commissioner, supra at 379; Lusk v. Commissioner, 250
F.2d 591, 594 (7th Cir. 1958), affg. T.C. Memo. 1955-119;
Schwarzkopf v. Commissioner, 246 F.2d 731, 734 (3d Cir. 1957),
affg. and remanding T.C. Memo. 1956-155; Kurnick v. Commissioner,
232 F.2d 678, 681 (6th Cir. 1956), affg. T.C. Memo. 1955-31.
Petitioner did not advise his tax preparer of the income
omitted from his returns. Concealing income from one’s return
preparer can be evidence of fraud. Korecky v. Commissioner,
supra at 1569; Farber v. Commissioner, supra at 420; Medlin v.
Commissioner, supra; Le v. Commissioner, supra; Sowards v.
Commissioner, supra; Ishler v. Commissioner, supra.
Moreover, petitioner was convicted of filing false Federal
income tax returns under section 7206(1) for each of the years at
issue. Section 7206(1) makes it a crime for a taxpayer to
willfully make and submit any return verified by a written
declaration that it is made under the penalties of perjury which
he does not believe to be true and correct as to every material
matter. Wright v. Commissioner, supra at 639. A taxpayer who
has been convicted of willfully and knowingly subscribing to a
false income tax return under section 7206(1) is not collaterally
estopped from contesting that he or she is liable for the
addition to tax for fraud because a conviction under section
7206(1) does not require a showing that the taxpayer willfully
attempted to evade tax. However, a conviction for filing false
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011