Eck v. Commissioner
United States Tax Court
1. Fraud. -- The Commissioner sustained his burden of proof and showed that a part of the deficiency against each taxpayer for each year was due to fraud with intent to evade tax. 2. Fraud -- Addition under Section 293 (b). -- The addition to the tax under section 293 (b) is 50 per cent of "any" deficiency and is not dependent upon the determination of a deficiency by the Commissioner. 3. Jurisdiction -- Notice of Fraud Penalty Only. -- A statutory notice from the…
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1. Fraud. -- The Commissioner sustained his burden of proof and showed that a part of the deficiency against each taxpayer for each year was due to fraud with intent to evade tax. 2. Fraud -- Addition under Section 293 (b). -- The addition to the tax under section 293 (b) is 50 per cent of "any" deficiency and is not dependent upon the determination of a deficiency by the Commissioner. 3. Jurisdiction -- Notice of Fraud Penalty Only. -- A statutory notice from the Commissioner, in which no deficiency is determined but advising the taxpayer that the 50 per cent addition provided by section 293…
1Opinion of the Court
OPINION.
Murdock, Judge:
The partnership income for each of the 3 years was understated on the original returns by amounts varying from $60,000 to $68,000. Those understatements were carried into the returns filed by the three partners. The partnership books were falsified in an effort to conceal the true amount of income earned in each year. Sales in substantial amounts in each year were not reported and purchases were overstated in substantial amounts for each year. The falsification of the accounts was with the knowledge of and, in many instances, at the direction of Karlan. The false and…
2Cases cited2 opinions
- Hirschman v. CommissionerUnited States Tax Court · 1949
- Wilson v. CommissionerUnited States Tax Court · 1946
3Cited by40 opinions
- Breman v. CommissionerUnited States Tax Court · 1976
- Bennett v. CommissionerUnited States Tax Court · 1958
- George M. Still, Inc. v. CommissionerUnited States Tax Court · 1953
- Robinson's Dairy, Inc. v. CommissionerUnited States Tax Court · 1961
- Stewart v. CommissionerUnited States Tax Court · 1976
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