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We turn to these factors and analyze the relevant factors
seriatim. We also discuss other factors that we consider to be
important to our query.
i. Understatement of Income
Petitioner substantially understated his income for 1980 and
1981 by not reporting his commissions and the interest earned
thereon. Petitioner also failed to report any of the CAI or
BarSon funds that he used for his personal benefit in each of the
subject years. Petitioners's consistent and substantial
understatement of income is strong evidence of fraud. Parks v.
Commissioner, supra at 664; Marcus v. Commissioner, 70 T.C. 562,
577 (1978), affd. without publishied opinion 621 F.2d 439 (5th
Cir. 1980).
ii. Inadequate Records
Petitioner did not keep records with respect to the
commissions earned by him and paid to CAI. His failure to
maintain adequate records of this income is indicative of fraud.
Truesdell v. Commissioner, 89 T.C. 1280, 1302 (1987); Gajewski v.
Commissioner, supra at 200.
iii. Failure to File Tax Returns
Petitioner was advised by Finley Kumble that he had to file
Form 959. He failed to file Form 959, even though Finley Kumble
prepared this form for him, and he signed it. We find
petitioner's failure to file Form 959 under the facts contained
herein to be another indicium of fraud.
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