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At the May 16, 1984, INI board of directors meeting,
petitioner took notes. These notes are no longer in existence,
having been destroyed by petitioner when he prepared the minutes.
The front page of the minutes sets forth May 18, 1984, as their
date, which is a typographical error. The last page of the
minutes is signed by petitioner and dated May 16, 1984. However,
the minutes were not transcribed in May 1984, nor did petitioner
sign the minutes in May 1984. The minutes note that the initial
value of each shareholder's stock was set at $75,000, omit any
reference to the increase in valuation to $150,000, and state
that, instead of allowing the value of the corporate stock to
increase, the shareholders would take any excess profits in
bonuses. The minutes state that petitioner moved to approve a
bonus to Burke in the amount of $100,000 because he was
principally responsible for obtaining the contracts. The minutes
further state that Burke may be given a promissory note to be
paid when funds are available. During the audit, petitioner took
the position that the May 16, 1984, minutes constituted a demand
note for the bonus.
Petitioner knew that Becker would rely on the May 16, 1984,
minutes in making his audit determination. The May 16, 1984,
minutes and canceled check for $50,000 induced Becker to allow
INI to take a deduction for the bonus of $50,000, the amount
Becker believed had actually been paid. Becker would not have
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