- 11 -
Federal income tax returns under section 7206(1) is highly
persuasive evidence that the taxpayer intended to evade tax.
Stefansson v. Commissioner, T.C. Memo. 1994-162; Avery v.
Commissioner, T.C. Memo. 1993-344; Miller v. Commissioner, T.C.
Memo. 1989-461.
In First Trust & Sav. Bank v. United States, 206 F.2d 97,
100 (8th Cir. 1953), the U.S. Court of Appeals for the Eighth
Circuit, the court to which an appeal in this case would lie,
cited with approval United States v. Croessant, 178 F.2d 96, 97
(3d Cir. 1949), wherein the U.S. Court of Appeals for the Third
Circuit stated:
the man who files a wilfully false return has
endeavored to mislead his government. He creates the
appearance of having complied with the law, whereas his
neighbor who has filed no return does no such thing.
Not only has he created the appearance of complying,
but that apparent compliance stands a good chance of
remaining unattacked, for the tax authorities cannot
possibly audit every taxpayer’s return every year. * *
* The law has always distinguished between failing to
disclose useful information and making a disclosure
which is a lie.
Petitioner’s intentional filing of a false tax return each
year from 1991 to 1994, reporting amounts of income which he knew
to be false, is a strong indicium of fraudulent intent with
respect to those years. Klassie v. United States, supra at 102.
Absent some credible evidence that knowingly filing a false
return should not be considered indicative of fraud, a section
7206(1) conviction is highly persuasive of fraud. Id. at 101;
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