Source: https://www.scribd.com/document/321207513/Joseph-Williams-III-v-Commissioner-IRS-4th-Cir-2012
Timestamp: 2019-04-24 09:10:30+00:00

Document:
Before WILKINSON and THACKER, Circuit Judges, and Michael F.
of Virginia, sitting by designation.
opinion, in which Judge Wilkinson and Judge Thacker joined.
STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellee.
for tax years 1993 through 2000.
be without merit, we affirm.
operational director, and officer of ALQI.
Smekhova had a written employment contract with ALQI.
Banque Indosuez (the ALQI accounts).
authority over the ALQI accounts.
agreements documenting the services rendered.
ALQI or its Swiss accounts.
the Swiss government froze the ALQI accounts.
he paid the additional tax due.
disclose his interest in the ALQI accounts.
Williams, No. 10-2230, 2012 WL 2948569 (4th Cir. July 20, 2012).
guilty plea to both counts.
to pay $3,512,000 in restitution.
federal custody on May 21, 2006.
on or before such time as the art was donated to charity.
packaging, shipping, and storage costs.
required holding period of one (1) year.
Abbey Art ultimately had the discretion to choose the donee.
interpreted under New York law.
this Agreement, is not a party to this case.
charitable contribution deduction of $425,625.
University for the current tax year.
this letter a check in the amount of $57,500.
Williams request prior to the end of the year.
of the art as a charitable contribution deduction.
appraised value of $98,900 to Drexel University.
issued a notice of tax deficiency to Williams.
report this income on his tax returns.
civil tax fraud during each of the years 1993 through 2000.
Williams v. Commr, No. 2202-08, 2009 WL 1033354 (U.S. Tax Ct.
not hold the art for more than one year before donating it.
1518581 (U.S. Tax Ct. Apr. 21, 2011).
McHan v. Commr, 558 F.3d 326, 332 (4th Cir.
2009); see also Welch v. Helvering, 290 U.S. 111, 115 (1933).
McHan, 558 F.3d at 331 (quoting Collins v.
(citation and quotation marks omitted)).
fraud when convicted for criminal tax evasion under 18 U.S.C.
7201 for the same taxable year.
bears the burden of proving civil tax fraud.
Moore, 360 F.2d at 356.
liability for the years 1993 through 2000.
return satisfies the elements of evasion of assessment.
of deficiency, or for any particular year therein.
argument before the Tax Court.
1087, 1090 (9th Cir. 1985)).
and we see no reason to do so.
and every one of these years.
or causing debts to be paid through and in the name of others.
and causing to be filed, false and fraudulent U.S.
(Title 26, United States Code, Section 7201).
conspiracy to defraud the government in violation of 18 U.S.C.
the ALQI accounts were taxable to him.
Blohm v. Commr, 994 F.2d 1542, 1554 (11th Cir.
necessarily decided by the court in his criminal case.
negotiation rather than a full review of the facts.
no briefs were filed, and no hearings were held.
deficiencies for the years 1943, 1944, and 1945.
pleading guilty before a final figure had been determined.
required to secure a criminal conviction for tax evasion.
indeed convicted of evasion for the years in question.
of fraud in [a] civil proceeding to determine tax liability.
committed tax fraud in each of those eight years.
of collateral estoppel in this case.
companys behalf when he earned the consulting fees at issue.
is basic to our system of income taxation.
(unpublished table decision); see also Lucas v. Earl, 281 U.S.
recognizing the corporations controlling position.
T.C. at 611 (citing Johnson v. Commr, 78 T.C. 882, 891 (1982)).
No such employer-employee relationship exists here.
any form of control over Williams as an employee.
question and merely used ALQI as a bank account.
Williams, 2011 WL 1518581, at *14.
follow that the consulting fee income is taxable to ALQI.
its corporate existence should be ignored as fictitious.
apart from serving as Williams bank account.
during the years 1993 to 2000.
determination is arbitrary or erroneous.
rebutted the presumption in this case.
deduction of the arts fair market value.
of the parties and the plain language of the Agreement.
reasons that follow, we find Williams arguments unavailing.
contribution for which payment is made within the taxable year.
consulting fee income were attributable to ALQI.
time the donation is made.
determined as of the time of the contribution.
the amount of the fair market value of the donated property.
See INDOPCO, Inc. v. Commr, 503 U.S. 79, 84 (1992).
in question for more than one year before donating it.
common understanding to hold property is to own it.
own or hold one must acquire.
cite United States v. Heller, 866 F.2d 1336, 1341 (11th Cir.
only to generate a tax savings.
and not the form by which it is masked.
per the terms of the Agreement.
472 U.S. at 722 (quoting United States v. Bess, 357 U.S.
the primary concern in the instant case.
deduction is limited to his basis in the donated art.
$3,600 up front, Williams purchased an option to buy art.
prior to their identification to the contract, id. at 2401(1).
time or place. . . .
Kaplan v. Lippman, 75 N.Y.2d 320, 324 (1990).
optionee is free to accept or reject the terms of the option.
to exercise the option in accordance with the agreement.
Agreement in 1996, and delivery was not made.
in question was not even identified in the Agreement.
representations, oral or otherwise, of any nature whatsoever.
but at no specified time.
completing all the necessary paperwork.
art, Abbey Art bore the risk of loss.
the agreement is $72,000, which is 24% of $300,000.
Agreement contemplates $300,000 worth of art would be purchased.
made ($425,625) far exceeded that amount.
art, however, and that issue is not before us.
and acquired a present interest in the art.
this occurred less than one year from the date of his donation.
donation to Florida International University in December 1999.
December of that same year.
contribution deduction is limited to his basis in the art.
Commissioners notice of deficiency is erroneous, we affirm.

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