John Marretta - Page 13

                                       - 13 -                                         
          he failed to report this income on his 1994 return so that he               
          would not have to pay income tax on that amount; and (7) in                 
          attempting to evade the additional taxes, he acted willfully;               
          that is, he acted voluntarily with the specific intent to violate           
          a known legal duty.  Thus, petitioner admitted to consistently              
          underreporting income with the intent to violate his duty to pay            
          taxes due and owing.                                                        
               Additionally, petitioner failed to inform his tax return               
          preparer of the distributions that he received from CNC.                    
          Petitioner claims that he did not discuss his CNC investments or            
          the distributions that he received from CNC with his tax return             
          preparer because CNC did not issue a Form 1099 to petitioner for            
          any of the years at issue.  Petitioner testified that rather than           
          inform his return preparer of the distributions from CNC and                
          raise the issue of the missing Forms 1099, petitioner chose to              
          conceal his CNC investments and distributions from his tax return           
          preparer.  Petitioner admitted at trial that he also failed to              
          provide to his tax return preparer the “vouchers” that he                   
          received from CNC, even though they purported to show the amount            
          of profit petitioner earned from his investments with CNC.                  
               Although we do not find petitioner’s explanation of his                
          behavior to be, for the most part, credible, we do accept                   
          petitioner’s claims that he cooperated with the agents during the           
          investigation and made no effort to hide or conceal anything                






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011