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failed to prove by clear and convincing evidence that petitioner
had a fraudulent underpayment for 1984.
We hold for petitioner as to 1984.
(c) 1985. Petitioner’s contentions as to 1985 are the same
as those he makes for 1983. However, the material facts are
different. Compare supra tables 13 and 14. Petitioner’s and
Betsy’s tax liability for 1985 clearly is greater than the amount
they reported on their 1985 tax return. We conclude that no
special 1985 element detracts from our general conclusions as to
petitioner’s fraud.
We hold for respondent as to 1985.
(d) 1986. Petitioner points to his vastly reduced role at
the Sley Corporations after March 1986 as a basis for his lack of
responsibility for what occurred at the Sley Corporations.
However, (1) the systems that petitioner oversaw continued to
operate for a while, at least; (2) substantially all of the 1986
constructive dividends were for expenses charged on Markette’s
American Express credit cards while petitioner was fully in
charge; (3) petitioner continued to play a role in Sley
Corporations’ affairs through 1986 and at least into early 1987;
and (4) petitioner signed his and Betsy’s 1986 joint tax return
with knowledge of the foregoing. We conclude that no special
1986 element detracts from our general conclusions as to
petitioner’s fraud, and that some part of the $5,963.43 omitted
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