Botwinik Bros. of Mass., Inc. v. Commissioner
United States Tax Court
1. V.G., a minority stockholder in T corp., in charge of its books and records, misappropriated funds from T and falsely recorded such misappropriations in T's books and records as corporate expenses over a period of about 10 years. T's income tax returns were prepared from the books and records and reflected deductions for corporate expenses which V.G. had falsely recorded.
Read the full summary
1. V.G., a minority stockholder in T corp., in charge of its books and records, misappropriated funds from T and falsely recorded such misappropriations in T's books and records as corporate expenses over a period of about 10 years. T's income tax returns were prepared from the books and records and reflected deductions for corporate expenses which V.G. had falsely recorded. The majority stockholders and other officers were unaware of these misappropriations, and fired V.G. upon discovery. Held, in the circumstances of this case, T's returns for 1946-1954 were not false or fraudulent with…
1Opinion of the Court
OPINION.
Naum, Judge:
1. Fraud 19^6-195^.- — It is agreed between the parties that the deficiency for each of the years 1946-1954 is barred by limitations 1 unless the returns were “false or fraudulent * * * with intent to evade tax.” Sec. 276(a), I.E.C. 1939; sec. 6501(c)(1), I.R.C. 1954. And, of course, the burden is upon the respondent to prove fraud by clear and convincing evidence. We hold that he has not carried that burden in this case.
It must be kept in mind at the outset that the fraud to he established is the fraud of petitioner corporation, not that of Vera Green. The record reeks…
2Cases cited13 opinions
- Kann v. Commissioner of Internal Revenue. Kann's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1954
- L. Schepp Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Federbush v. CommissionerUnited States Tax Court · 1960
- Auerbach Shoe Co. v. CommissionerUnited States Tax Court · 1953
- United Mercantile Agencies, Inc. v. CommissionerUnited States Tax Court · 1955
8 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Browning v. Comm'rUnited States Tax Court · 2011
- Botwinik Bros. of Mass., Inc. v. CommissionerUnited States Tax Court · 1963
- Kautzmann v. United StatesDistrict Court, D. Montana · 1986
- Rosenbaum v. CommissionerUnited States Tax Court · 1983
- Universal Ins. Servs. v. CommissionerUnited States Tax Court · 1994