- 18 - that petitioner had substantiation problems with other claimed deductions. Petitioner failed to comply with repeated requests from Agent Riley for records, and his actions show no apparent effort to maintain adequate records from which Agent Davis could develop an accurate accounting of petitioner’s finances. 3. Failing To File Tax Returns Petitioner failed to file timely tax returns for 1994 through 2000, and his excuse for not filing timely returns for the years in issue was that his “intent was to get an understanding on 1994, 1995 and 1996 and that I would file the 1997, 1998, 1999 and 2000 as soon as I could, but that I had [an] intention of getting those all cleared up this [2003] year.” Petitioner did not file returns for 1994 through 1996 until May 11, 2000, and did not file returns for 1997 through 2000 until March or April 2004. In both cases, the tax returns were filed only after respondent issued statutory notices of deficiency to petitioner. In determining fraudulent intent, the Court considers as relevant a taxpayer’s intelligence, education, and tax expertise. Iley v. Commissioner, 19 T.C. 631, 635 (1952). While the record does not indicate that petitioner received any special education or training in the tax laws, he promoted himself as a business person skilled in providing seminars on trusts and tax planning.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011