Ray E. Mason - Page 11

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          Petitioner’s explanation is implausible in light of his testimony           
          that he does not have a will and his wife did not have a will               
          when she died.  Removing assets from respondent’s reach by                  
          transferring them to a trust has been held to be an affirmative             
          act of fraud.  See Simmons v. Commissioner, T.C. Memo. 1997-269.            
          We find that the transfer of the personal residence and business            
          interests to the trusts and his implausible explanation are both            
          evidence of fraud.                                                          
               Petitioner next argues that transferring his assets to                 
          various trusts was not fraudulent because he used his own Social            
          Security number as the trusts’ taxpayer identification number and           
          he continued to live in the residence after the conveyance to the           
          trust.  These contentions do not persuade us, however, that                 
          petitioner’s intent was to comply with respondent’s collection              
          efforts when considered in conjunction with all of petitioner’s             
          actions during the relevant period.  We find that petitioner                
          transferred his assets to various trusts to hinder respondent’s             
          collection efforts, and such action therefore is evidence of                
          fraud.                                                                      
               Most of the badges of fraud that this Court customarily                
          relies on are present in this case.  There is a pattern of                  
          failing to file income tax returns, understating income, failing            
          to cooperate with tax authorities, making frivolous arguments,              
          failing to make estimated tax payments, concealing assets and               






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