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interest that survived, and Gleave traded the Zahno boat in for a
second boat, which Gleave still had at the date of the trial.
We are convinced that the cousin’s involvement was not in
derogation of Gleave’s interest, and that Kenmore’s providing
Gleave with the money to buy the Zahno boat resulted in $8,099.70
income to Gleave for 1981.
(h) Conclusion
We hold, and we have found, that respondent proved by clear
and convincing evidence that Gleave had an underpayment of tax
for each of the years 1981, 1982, and 1983.
(2) Fraudulent Intent
Gleave knew he had income. He signed (“under Penalty of
Perjury”) Kenmore’s bankruptcy petition on the very page where it
states that Kenmore paid “$10,000 compensation”, and he signed
his own bankruptcy petition on the very page where it states that
he took from his business “$10,000 - $200 per week draws self
employed”. Gleave knew that Kenmore was paying many of his
obligations.
Gleave tried to “drop out” of the system. Gleave did not
file tax returns, even though he signed Kenmore’s tax returns.
Gleave ran his funds through Kenmore’s Account, thereby avoiding
information reporting by any bank. Gleave did not have Kenmore
provide information reports, such as Forms W-2 and 1099.
Consistent with this approach, Gleave did not keep personal
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