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Peppertree Restaurant, to remove cash directly from the
restaurant's cash register and place the money in an envelope.
Mr. Beretta ordered Ms. Bartley to account for the skimmed
proceeds as a miscellaneous expense in the daily sales book.
In addition, petitioner suggested to Mr. Longfellow that
they skim money directly from the Atascadero Peppertree
Restaurant cash register. In order to account for the skimmed
proceeds, Mr. Longfellow would make false overrings on the cash
register and then remove an amount equal to the false overring.
We find that petitioner's entire course of conduct reveals
that he willfully intended to conceal income and prevent the
collection of tax he knew was owing on the skimmed income.
Petitioner skimmed money directly from the cash registers in
order to make it difficult to determine that he was receiving
income from the restaurants and to ensure that no record existed
of the amount of money that he was deriving from the restaurants.
In addition, petitioner received all of his income from the
restaurant in cash in order to make the detection of skimming
activity more difficult. Petitioner also ensured that his name
was not on any of the business records for any of the restaurants
in which he was involved. Fraud may be inferred from conduct
intended to conceal income. Gajewski v. Commissioner, supra;
Stone v. Commissioner, supra at 224.
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