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4. Concealment of Income or Assets.
The concealment of income or assets is an indicium of fraud.
Bradford v. Commissioner, supra at 307-308. Petitioner created
and maintained an interest bearing foreign bank account to which
he made numerous deposits during the years at issue. When
petitioner filed his tax returns for taxable years 1980, 1981,
1982, 1983, and 1986, he concealed the existence and content of
that account by leaving blank that portion of each Schedule B
which specifically inquired as to the existence of such assets.
Similarly, when he filed his tax returns for taxable years 1984
and 1985, petitioner concealed the existence and content of the
foreign account by explicitly stating on each Schedule B that he
did not maintain a foreign account during the taxable year.
Through these representations, petitioner concealed the interest
earned on the foreign account. Such concealment is evidence of
fraud. Bradford v. Commissioner, 796 F.2d 303 (9th Cir. 1986).
Additionally, petitioner concealed the existence of the
foreign account from his accountant. Concealment of information
from an accountant is evidence of fraud. Korecky v.
Commissioner, 781 F.2d 1566, 1569 (11th Cir. 1986), affg. T.C.
Memo. 1985-63. Reliance upon an accountant to prepare accurate
returns may negate fraudulent intent if the accountant has been
supplied with all the information necessary to prepare the
returns. Estate of Temple v. Commissioner, 67 T.C. 143, 162
(1976). This has not occurred in the instant case.
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