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case was not accepted for criminal prosecution, in which the
Government would be required to bear a heavier burden of proof
than in a civil case, see Moore v. United States, 360 F.2d 353,
355 (4th Cir. 1965), does not suggest that petitioner is not
liable for the civil fraud addition, and the memorandum states
that none of the considerations leading to the declination of the
referral would preclude imposition of that addition to tax. That
the Government declined to pursue criminal charges against
petitioner has no bearing on the question of petitioner’s
liability for the civil fraud addition, and even an acquittal of
criminal tax evasion charges would in no way affect his liability
for those additions. Otsuki v. Commissioner, 53 T.C. at 112.
Petitioner also claims that he relied on the representations
of Ms. Murphy that taxes were paid through 1991. While a showing
of good faith on the part of a taxpayer can preclude the
existence of fraud, Loftin & Woodard, Inc. v. United States, 577
F.2d 1206, 1238 n.72 (5th Cir. 1978); Niedringhaus v.
Commissioner, 99 T.C. 202, 220 (1992), the evidence petitioner
relies on does not indicate good faith on his part. In one
portion of his brief, petitioner points to a provision of what
appears to be a proposed divorce settlement between petitioner
and Ms. Murphy dated October 18, 1991, which states: “John Van
Heemst agrees that Colleen Murphy has paid to date several monies
for him both personal and business including paying the IRS up to
1991”. Elsewhere on brief, however, petitioner claims that the
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