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showed them a brown book from a year not under consideration and
explained how he calculated his income. Petitioner was
uncooperative and evasive when asked to produce the brown books for
the years under consideration. He was not able to explain the
numbers on his summary sheets, and stated that he could not read
his own writing.
To summarize, the evidence in this case shows, clearly and
convincingly, that the entire underpayment for 1984, 1985, and 1986
is due to petitioner's fraud. Thus, we sustain respondent's
determination that petitioner is liable for the additions to tax
under section 6653(b) for 1984, 1985, and 1986. We now turn to
whether any part of the underpayment for the years under
consideration is due to Mrs. Jenkins' fraud.
b. Mrs. Jenkins
Mrs. Jenkins' testimony was not fully credible. Her support
of petitioner's claim that petitioner provided Ms. Bellamy with the
brown books for the years under consideration demonstrates that
part of her testimony was not plausible. We have found that
petitioner never provided Ms. Bellamy with the brown books.
Nonetheless, we are not inclined to hold that Mrs. Jenkins
committed fraud based solely on her lack of credibility. As
previously stated, fraud is never presumed; even if the taxpayer's
testimony is not credible in all respects, we may still be left
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