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Commissioner, 391 F.2d 727, 732-733 (4th Cir. 1968), affg. on
this issue and revg. on another issue T.C. Memo. 1965-246; Estate
of Temple v. Commissioner, 67 T.C. 143, 162-163 (1976).
In the instant cases, petitioner supervised Baybrook in such
a manner that Baybrook was not informed of the personal nature of
the charges that she was noting on the Sley Corporations books.
Also petitioner knew that this meant that Berger’s access to the
books would not enable Berger to realize that Markette was paying
petitioner’s and Betsy’s personal expenses.
Petitioner’s effort to claim that he relied on Baybrook and
Berger is belied by the record. The transparent falseness of
petitioner’s efforts is itself an indicator of petitioner’s
fraudulent intent. Bahoric v. Commissioner, 363 F.2d at 153-154;
Boyett v. Commissioner, 204 F.2d at 208.
(6) Other Considerations
We believe that petitioner established a pattern that
continued into 1986 with regard to constructive dividends, and
there is strong evidence about his fraudulent intent with regard
to the omission of that income from his and Betsy’s joint tax
returns. However, determinations about fraud must be made year-
by-year. Drieborg v. Commissioner, 225 F.2d at 219-220; Estate
of Stein v. Commissioner, 25 T.C. at 959-963. We consider at
this point matters of particular significance to individual
years.
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