Taxpayer fraud

November 5, 2012

  • 220 INTERNAL REVENUE
  • 220XXXI Penalties and Additions to Tax
  • 220XXXI(B) Grounds and Amount
  • 220k5218 k. Fraud.

220 INTERNAL REVENUETaxpayer’s withdrawal of more than $350,000 from political campaign fund was income to taxpayer for which she fraudulently tried to evade paying tax, and thus taxpayer was liable for civil fraud penalty, and statute of limitations was no bar to assessing tax deficiency; taxpayer used campaign funds, which had no state reporting requirements, to purchase car and to invest in luxury golf course in her own name, not on behalf of campaign, and taxpayer attempted to conceal her use of campaign funds through deceptive record-keeping and by hiding car in police officer’s garage.
Loren-Maltese v. C.I.R., 2012 WL 3079052
Suggested by Elizabeth Yockel, Senior Attorney Editor, Thomson Reuters