- 24 - We also find it persuasive that the skimming from the restaurants continued for a number of years. Courts have held that consistent understatements of income in substantial amounts over a number of years by knowledgeable taxpayers are persuasive evidence of fraudulent intent to evade taxes. Baumgardner v. Commissioner, 251 F.2d 311, 322 (9th Cir. 1957), affg. T.C. Memo. 1956-112; Otsuki v. Commissioner, supra at 107-108. Another important factor in this case is Mr. Beretta's knowledge of the tax laws. The intelligence and sophistication of the taxpayer, especially his knowledge of the tax laws, is an important factor in determining whether he committed fraud. Scallen v. Commissioner, 877 F.2d 1364, 1370-1371 (8th Cir. 1989), affg. T.C. Memo. 1987-412. Mr. Beretta was employed by the Internal Revenue Service as a revenue officer for nearly 30 years. Mr. Beretta was trained to identify tax examination situations and to inform taxpayers of their obligation to pay taxes. In addition, he investigated taxpayers who had failed to file tax returns. Petitioner asserts that he honestly believed that the proceeds were repayment for interest-free loans made to the restaurants. We find it difficult to believe that a person with petitioner's knowledge of tax law would not know that the receipt of cash directly from the cash registers of the restaurants he owned was not taxable. There was no loan schedule nor were therePage: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
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