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5. Implausible or Inconsistent Explanations of Behavior
Petitioner made implausible and inconsistent statements.
Examples of such implausible or inconsistent testimony and
behavior are:
(a) Petitioner testified that he did not prepare his own
returns; however, in his amended petition and his reply to answer
to amended petition he repeatedly claimed that he prepared his
own returns, and at audit he told Mr. Jung that he prepared his
own returns;
(b) petitioner told Mr. Jung at audit that none of Ms.
Choe's properties were sold during 1988, 1989, and 1990, but he
testified at trial that some of Ms. Choe's properties had indeed
been sold;
(c) petitioner testified that the reason he did not give
some of his records to Mr. Jung was because they were lost in
1994 during the Northridge earthquake, yet the earthquake which
petitioner claimed destroyed the records occurred 3 years after
the audit.
The cumulative effect of such testimony is indicative of
fraud on the part of petitioner.
6. Intent To Mislead
Misleading statements to an investigating agent may be
evidence of fraud. See Gajewski v. Commissioner, 67 T.C. at 200.
Petitioner attempted to mislead Mr. Jung when he stated that his
patients exclusively paid for his services through insurance
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