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Commissioner, T.C. Memo. 2003-224, affd. 138 Fed. Appx. 298 (11th
Cir. 2005). Petitioners cannot blame Greenfield for the
misstatements and errors in reporting their tax liabilities when
petitioners provided Greenfield with the incorrect figures to be
entered on their tax returns and when they alone possessed the
information that would have indicated discrepancies between
petitioners’ actual tax liabilities and the amounts reported on
their returns. See Bacon v. Commissioner, T.C. Memo. 2000-257,
affd. without published opinion 275 F.3d 33 (3d Cir. 2001).
Furthermore, petitioners’ failure to provide to Greenfield the
documentation necessary for his accurate preparation of their tax
returns is indicative of fraud. See Medlin v. Commissioner,
supra; Ishler v. Commissioner, T.C. Memo. 2002-79.
Respondent has proven by clear and convincing evidence an
underpayment of tax due to fraud for each year. Petitioners have
not proven that any part of the underpayments was not
attributable to fraud. See sec. 6663(b). On consideration of
the entire record, we conclude that petitioners are liable for
the fraud penalties determined under section 6663(a).
To reflect the foregoing and the concessions of the parties,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011