- 26 -
5. Failing To Cooperate With Tax Authorities
We next consider petitioners’ level of cooperation with
respondent. Failure to cooperate with the Internal Revenue
Service (IRS) is an indicium of fraud. Douge v. Commissioner,
supra; Bradford v. Commissioner, supra at 307; Recklitis v.
Commissioner, supra. Petitioners did not cooperate with
respondent’s investigations. Petitioners actively sought to
delay respondent’s investigation by refusing to meet with
respondent’s agents or refusing to offer alternative dates on
which to meet. Failing to appear at a scheduled interview caused
Revenue Agent Andrews to issue a summons to Mrs. Runkle to appear
on October 31, 1994, with her books and records. When Mr. Runkle
phoned Revenue Agent Andrews to advise him that Mr. Runkle would
accompany his wife to the summons conference, Mr. Runkle declined
the revenue agent’s offer to reschedule a meeting to examine Mr.
Runkle’s records, a meeting that Mr. Runkle previously refused to
attend.
At the summons conference, Mrs. Runkle was accompanied by
Mr. Runkle and four other individuals who refused to identify
themselves. Mrs. Runkle failed to bring any of the requested
books and records as summoned. Mrs. Runkle claimed she needed
the personal residence address of Revenue Agent Andrews before
she would comply with the summons. When the revenue agent
provided his business address rather than personal address, Mrs.
Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NextLast modified: May 25, 2011