Wright v. Comm.

1
Wright v. Comm.

• 84 T.C. 636

2
History

• Wright takes over fathers farm
• Has no farming or Acct. knowledge
• Wright knowingly understates income
• Pleads guilty to perjury

3
Facts

• IRS wants summary judgment
• His conviction/guilty plea constitutes fraud
• Petitioner wants a trial on the merits
• States that lack of business knowledge led to the
  misrepresentation.

4
Issue

• Convicted on section 7206(1) (perjury)
• section 6653(b) (fraud) allows for penalty
• Requires intent to evade taxes
• Does perjury necessarily create fraud?
• Considine v. Commissioner, 68 T.C. 52 (1977)
• Conviction Under 7206, summary granted

5
Holding

• Motion for Sum. Judgment Denied

6
Reasoning

• Petitioners lack of business acumen
• intent to evade taxes is not an element of the
  crime covered by section 7206(1)