Parks v. Commissioner
United States Tax Court
Held, respondent's determination that petitioner had unreported cash income from an unidentified source is sustained. Held, further: Respondent must prove both an underpayment and fraudulent intent by clear and convincing evidence in order to satisfy his burden of proof with respect to an addition to tax for fraud.
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Held, respondent's determination that petitioner had unreported cash income from an unidentified source is sustained. Held, further: Respondent must prove both an underpayment and fraudulent intent by clear and convincing evidence in order to satisfy his burden of proof with respect to an addition to tax for fraud. When allegations of fraud are intertwined with unreported and indirectly reconstructed income, respondent can satisfy his burden of proving an underpayment in one of two ways. Respondent may prove an underpayment by proving a likely source of the unreported income, Holland v.…
1Opinion of the Court
WHITAKER, Judge:
Respondent determined deficiencies in petitioner’s Federal income tax and additions to tax as follows:
_Additions to tax_
Sec. 6653(b)(2) Sec. 6661 Year Deficiency Sec. 6653(b)(1)1
50% of the $4,078 interest on $16,1012 1983 $16,310 $8,155.00
50% of the interest on $4,147 1984 4,147 2,073.50
Petitioner is represented by counsel in docket No. 23041-87 and is pro se in docket No. 13496-88. The two docket numbers were consolidated because the issues are substantially identical, differing primarily in that docket No. 23041-87 pertains to taxable year 1983 and docket No. 13496-88…
2Cases cited32 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Holland v. United StatesSupreme Court of the United States · 1955
- Spies v. United StatesSupreme Court of the United States · 1943
- Rowlee v. CommissionerUnited States Tax Court · 1983
- Stone v. CommissionerUnited States Tax Court · 1971
27 more not listed; retrieve them via the Exa API.
3Cited by243 opinions
- Rhone-Poulenc Surfactants & Specialties, L.P. v. CommissionerUnited States Tax Court · 2000
- Estate of SpearCourt of Appeals for the Third Circuit · 1994
- Sadler v. CommissionerUnited States Tax Court · 1999
- Joseph P. Caulfield v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1994
- Franklin v. CommissionerUnited States Tax Court · 1993
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