- 2 -
years 1994, 1995, and 1996.1 We shall grant respondent’s motion.
Background
Pursuant to the Court’s Order issued under Rule 37(c),2 all
of the affirmative allegations in the answer are deemed admitted.
Respondent also represents certain additional facts in respon-
dent’s motion that Mr. Clinkscale does not dispute.
Mr. Clinkscale was incarcerated in Ashland, Kentucky, at the
time the petition in this case was filed.
During each of the years 1994, 1995, 1996, and 1997, Mr.
Clinkscale (1) engaged in a criminal enterprise to distribute
cocaine from which he earned substantial income; (2) conducted
financial activities in currency (i.e., cash) with the intent to
evade Federal income tax (tax); (3) structured various financial
activities in an attempt to avoid Federal reporting requirements
with the intent to evade tax; and (4) failed to maintain complete
and adequate books and accounts of income-producing activities as
required by applicable provisions of the Code and the regulations
1Respondent’s motion pertains only to Mr. Clinkscale. That
is because petitioner Sheila D. Clinkscale (Ms. Clinkscale) and
respondent filed a stipulation of settled issues in which Ms.
Clinkscale agreed to all of the determinations for the taxable
years 1994, 1995, and 1996 that respondent made in the notice of
deficiency (notice) that respondent issued to her and Mr.
Clinkscale. For convenience, we shall hereinafter generally
refer only to Mr. Clinkscale.
2All Rule references are to the Tax Court Rules of Practice
and Procedure. All section references are to the Internal
Revenue Code (Code) in effect for the years at issue.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011