Dennis E. Runkle and Debra A. Runkle - Page 32

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          decided not to maintain books and records, and they destroyed any           
          records they had for the years at issue.  They concealed their              
          assets through the use of their nominee, the Elknur Family                  
          Limited Partnership, and they refused to cooperate with                     
          respondent’s agents.  They not only refused to cooperate with               
          respondent’s agents, but they made unsuccessful efforts to quash            
          or otherwise interfere with respondent’s summonses.  They                   
          intimidated the revenue agent by appearing at the summons                   
          conference and questioning him in the presence of four other                
          individuals who refused to identify themselves.  They also relied           
          upon frivolous arguments to impede or otherwise hinder                      
          respondent’s income tax determinations and this Court’s                     
          consideration of this case.                                                 
               Considering all of the facts and circumstances of this case,           
          we find that respondent has proven by clear and convincing                  
          evidence that petitioners’ failure to file an income tax return             
          for the years at issue was fraudulent.  Accordingly, petitioners            
          are liable for the section 6651(f) addition to tax for the years            
          at issue.                                                                   
               Because of our holding regarding the addition to tax under             
          section 6651(f) for fraudulent failure to file, we need not                 
          address whether petitioners are liable for the addition to tax              
          under section 6651(a)(1) for failure to file timely.                        







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