Attorney-at-Law

FRAUD MEETS INGENUITY

In Uncategorized on 05/04/2022 at 16:49

No Summary J

Jeffrey D. Hoyal & Lori D. Hoyal, et al., Docket No. 6791-20, filed 5/4/22, claim their periodical sales business is on the up-and-up, hence 3SOL, so summary J. IRS claims fraud and wants a trial.

You can’t presume fraud, you can only prove it with “clear and convincing evidence.” Judge Ronald L. (“Ingenuity”) Buch tells the story.

“The burden of proof is on the Commissioner to establish fraud with the intent to evade tax by clear and convincing evidence. The presence of fraud is a factual question to be determined by examining the entire record. The Commissioner must show that the taxpayer acted with specific intent to evade taxes known to be owing through conduct intended to conceal, mislead, or otherwise prevent collection. Because direct evidence of a taxpayer’s subjective intent is rare, we may infer fraudulent intent from circumstantial evidence, and we consider the taxpayer’s entire course of conduct.” Order, at p. 3. (Citations omitted, but get them for your memo of law file).

Save your time for trial prep; when fraud is on the menu, summary J is off.

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