McDonnell v. Commissioner
United States Board of Tax Appeals
1. The 50 per cent fraud penalty asserted for filing a false and fraudulent return with intent to evade tax approved, where the returns filed were admittedly false, grossly understated the income, were filed without reference to readily accessible means of determining income received, and were allowed to stand without amendment until errors were discovered by revenue agents, though petitioner knew he was under obligation to amend, and where the taxpayer's explanations for…
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1. The 50 per cent fraud penalty asserted for filing a false and fraudulent return with intent to evade tax approved, where the returns filed were admittedly false, grossly understated the income, were filed without reference to readily accessible means of determining income received, and were allowed to stand without amendment until errors were discovered by revenue agents, though petitioner knew he was under obligation to amend, and where the taxpayer's explanations for omissions of income items were so conflicting as to be unconvincing. 2. The 50 per cent fraud penalty is measured by 50…
1Opinion of the Court
*691OPINION.
Milliken:
Petitioner avers that there has not been a “legal determination” of deficiencies for the years 1920 and 1921 by the respondent, in that the provisions of section 1005 of the Revenue Act of 1924 were not complied with. We are unable to accept his views in the matter. Section 1309 of the Revenue Act of 1921 and section 1005 of the Revenue Act of 1924 contain identical provisions, as follows:
No taxpayer shall be subjected to unnecessary examinations or investigations, and only one inspection of a taxpayer’s books of account shall be made tor each taxable year unless the taxpayer…
2Cases cited3 opinions
- United States v. IshamSupreme Court of the United States · 1873
- Beam v. HamiltonCourt of Appeals for the Sixth Circuit · 1923
- Weeks v. SibleyDistrict Court, N.D. Texas · 1920
3Cited by17 opinions
- William Levinson and William Levinson, Assignee of F.M.P. Corporation, Formerly Known as Fairmount Motor Products Co., Inc. v. United StatesCourt of Appeals for the Third Circuit · 1974
- Flynn v. CommissionerUnited States Tax Court · 1963
- Howard M. Reineman and Helen Reineman v. United StatesCourt of Appeals for the Seventh Circuit · 1962
- Kurnick v. CommissionerUnited States Tax Court · 1955
- Field Enterprises, Inc. v. United StatesUnited States Court of Claims · 1965
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