Bennett Geiger - Page 13

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               Petitioner argues that reasonable inferences support the               
          conclusion that there was an embezzlement case and that such                
          inferences are sufficient to support a decision in his favor.               
          Petitioner cites Moore v. Commissioner, T.C. Memo. 1983-671, for            
          the proposition that a court may rely on reasonable inferences in           
          an embezzlement case.  In fact, the actual holding in that case             
          is that the Court will not make or rely upon assumptions without            
          some basis in the evidence.  The taxpayer in Moore, like                    
          petitioner, failed to produce sufficient evidence to raise his              
          claim of embezzlement from a bare assumption to a reasonable                
          inference.  Moore also fails to support petitioner’s position in            
          that the existence and amount of money missing in Moore were not            
          in issue, only the characterization of the money as stolen from             
          the taxpayer versus misappropriated from a partnership.  On the             
          basis of the record, we conclude that petitioner has not provided           
          sufficient credible evidence to support a reasonable inference of           
               Petitioner further argues that, after inferring that some              
          money was embezzled, the Court can now estimate the amount of               
          loss.  Petitioner cites Mann v. Commissioner, T.C. Memo 1981-684,           
          for the proposition that the Court may estimate an embezzlement             
          loss, applying the rule of Cohan v. Commissioner, 39 F.2d 540               
          (2d Cir. 1930).  Although Mann did involve both an embezzlement             
          and an estimation, there was no estimation of an embezzlement.              

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