Frank H. and Marla C. Black - Page 33




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          1991 and 498 miles per day in 1992.4  At an average rate of 60              
          miles per hour, Mr. Black would have had to drive between 7 and 8           
          hours per day, 7 days per week,5 not including time spent stopped           
          for gas or meals, or meeting with clients.                                  
               At trial, both petitioners testified that Mr. Black “loved             
          to drive”.  Petitioners argue that Mr. Black’s business was just            
          starting up and client contact was very important.  However,                
          petitioners failed to identify even one instance of any business-           
          related travel for either year in issue by destination or name of           
          client.  Additionally, the original travel log is now missing and           
          is not part of the record.                                                  
               Mr. Black may have traveled for business purposes.  However,           
          we are convinced that the deductions for travel claimed on the              
          1991 and 1992 joint returns are grossly overstated.  We find that           
          such overstatements are indicative of Mr. Black’s fraudulent                
          intent to avoid taxes.                                                      
               Petitioner is an intelligent and well-educated businessman.            
          We find that he had a basic comprehension of Federal tax matters            
          and he understood that individuals must report their gross income           
          and can only claim deductions for amounts actually paid in the              
          ordinary and necessary course of business, and not for personal             
          expenditures.                                                               


               4156,669/365 = 429.23; 181,692/365 = 497.79                            
               5429/60 = 7.15; 498/60 = 8.3                                           





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