Donald R. Cooley and Cathy A. Cooley - Page 22

                                       - 22 -                                         
         amended returns indicate that petitioner did not keep adequate               
         business records and that his inadequate record keeping                      
         constitutes an indicium of fraud.  Niedringhaus v. Commissioner,             
         99 T.C. at 211 (1992).                                                       
               “The sophistication, education, and intelligence of the                
         taxpayer are relevant to determining fraudulent intent.” Sadler              
         v. Commissioner, 113 T.C. 99, 104 (1999); see Niedringhaus v.                
         Commissioner, supra at 211; see Scallen v. Commissioner, T.C.                
         Memo. 1987-412, affd. 877 F.2d 1364 (8th Cir. 1989).  Throughout             
         the years in issue, petitioner was an attorney, and we may                   
         consider this fact in deciding whether petitioner acted with                 
         fraudulent intent.  Petitioner began his legal career as an                  
         Assistant United States Attorney, charged with the duty to                   
         enforce the laws of the United States.  After serving as an                  
         Assistant United States Attorney, petitioner engaged in private              
         practice as a criminal defense lawyer.  We conclude that                     
         petitioner’s professional experiences provided him with knowledge            
         that engaging in a pattern of consistently failing to report                 
         significant amounts of income is unlawful and that he has a legal            
         obligation to accurately report income.                                      
               Petitioner contends that a section 6663(a) penalty should              
         not be levied against him for his 1990 taxable year.  We conclude            
         that petitioner’s contention is without merit.  Petitioner                   
         pleaded guilty to an attempt to evade or defeat tax pursuant to              






Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011