Claude E. Spriggs v. Commissioner of Internal Revenue

Petitioner, as taxpayer, seeks review of the decision of the tax court establishing deficiencies and additions to taxes upon his income for the years 1942 to and including 1947. He asserts error in seven respects:

(1) The tax court denied his motion made at the outset of these proceedings for a further and better statement of deficiencies. During the course of proceedings, taxpayer had every opportunity to oppose the specific contentions and computations of the commissioner. Objections were made by him, were considered by the tax court and in many instances were allowed. We find no prejudice by virtue of the denial of this early motion.

(2) The court found fraudulent the returns for all years in question. Taxpayer contends there is nothing from which fraud can be found save for the year 1947. We disagree. The court disbelieved and found incredible taxpayer’s explanation of the reason for his failure to return conceded items of income. The record otherwise provides support for the court’s finding that this failure was with intent to evade tax liability. The consistent understatement during the six year period is itself strong evidence of such intent. Baumgardner v. Commissioner…