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On this record, petitioner’s conduct evidences an intent to
conceal income and assets to mislead respondent for the purpose of
evading tax.
7. Failure To Cooperate With Tax Authorities
Petitioner was not cooperative or forthright with respondent.
Throughout the examination and pretrial stages of this case
petitioner resisted disclosure of documentation and information
requested by respondent directly related to his employment and his
relation to his purported employer. When responding to questions,
he gave contradictory and misleading answers. On this record,
petitioner failed to cooperate with the tax authorities.
8. Underpayment Attributable to Fraud
After consideration of all the relevant factors, the Court
concludes respondent proved by clear and convincing evidence that
petitioner’s underpayments of tax with respect to the funds wire
transferred to him in the years at issue were attributable to
fraud under section 6663(a). Therefore, the underpayment of tax
attributable to the gains petitioner recognized from the sales of
the Vancouver and Black Butte properties are also attributable to
fraud unless he can establish by a preponderance of the evidence
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Last modified: March 27, 2008