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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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