Fraud Penalty Affirmed: In Not-So-Chic Fashion, the Ninth Circuit Upholds Fraud Penalties in Chico

Claud Mccoid

In Chico v. Commissioner, the taxpayers challenged the Tax Court’s evaluation of a fraud penalty. The Tax Court had imposed civil fraud penalties from the married taxpayers, finding crystal clear-and-convincing proof of fraud primarily based on circumstantial evidence—i.e., “badges of fraud,” these as an understatement of revenue, inadequate documents, or concealing assets—and the taxpayer-husband’s specialized awareness and knowledge as a tax preparer….
By: Freeman Regulation

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The Legal Assist Society goes beyond the courtroom to defend, empower, and provides voice to everyday New Yorkers. It may be used positively in the context of a “political answer” which is compromising and non-violent, 1 or descriptively as “the artwork or science of government”, but also typically carries a […]