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accounts was fraudulent. He deposited all of his receipts,
including the two commission checks he cashed in 1988, in bank
accounts, several of which bore his Social Security number. We
do not think that he was trying to hide his income or ownership
of the accounts.
Respondent points out that petitioner husband did not keep
books and records for his real estate business in 1988 and 1989.
However, as stated above, we do not believe that he intended to
defraud. Instead, we think he did not keep books and records
other than his checks because he was disorganized and because he
could not afford accountants. See Compton v. Commissioner, T.C.
Memo. 1983-647.
Respondent points out that petitioner husband deposited
checks from Soldi in Premiere's and Canta's out-of-state bank
accounts. Petitioner husband admitted that he routinely
transferred funds between accounts. He did this to create a
float on these funds.12 It was not an attempt to hide his
income.
Respondent points out that petitioner husband used business
bank accounts to pay personal expenses, and that he deposited
commission checks in the Homeowners account rather than in a
personal account in 1989.
12 A float exists when checks that have been credited to
the depositor's bank account have not yet been debited to the
drawer's bank account. This often permits the interest-free use
of funds during the brief period before the checks are debited to
the drawer's account. Black's Law Dictionary 640 (6th ed. 1991).
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