Dennis C. Gandy - Page 45

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          totaling less than $10,000 in order to avoid required reporting             
          of those transactions to the IRS.                                           
               Mr. Gandy made several representations, including to his               
          preparers and to respondent’s agents, that amounts deposited in             
          the nursery account from Burnice Gandy constituted loans, when              
          the evidence is convincing that Burnice Gandy could not have made           
          those loans and that the source of the funds was nursery                    
          receipts.  Mr. Gandy contends that receipts were concealed in               
          relation to the divorce to protect them from Mrs. Gandy.  Even if           
          such concealment served two purposes, the effect and apparent               
          intention was also to underreport income.  Several witnesses                
          reported that Mr. Gandy expressed his intention to “beat the                
          government” by devices including use of cash.  None of these                
          incriminating statements were refuted by petitioners.                       
               Petitioners dispute respondent’s agents’ accounts of the               
          original interview with Mr. Gandy.  Even disregarding                       
          respondent’s arguments concerning inconsistencies and false                 
          statements made during that investigation, the record reflects              
          many inconsistent and implausible statements.  Much of the                  
          implausibility is in the form of petitioners’ claimed defenses to           
          respondent’s determinations.  Petitioners engage in rhetoric and            
          hyperbole unsupported by the record in attempts to blame others             
          for their current predicament and to obscure the compelling                 
          evidence against them.  For example, they assert that an                    





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Last modified: May 25, 2011