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cost to INI and himself. Petitioner’s willful misrepresentation
to Scanlon-Hull that he had received tax advice from Cutshall,
his decisions not to ask for Cutshall’s advice and to keep her in
the dark at the times of preparation of his original returns, and
to disregard her advice at the time of preparation of his amended
returns, support the inferences we draw from all the evidence in
the record that petitioner intended and attempted to evade his
income tax liabilities.
A taxpayer is liable for the addition to tax for fraud if he
had the intent to evade taxes at the time he filed his income tax
returns. Cf. Badaracco v. Commissioner, 464 U.S. 386, 394 (1984)
(fraud committed when original return filed). A fraudulent
original return is not purged by the subsequent filing of a
correct amended return. The fraud is committed when the original
return is prepared and filed. Id.
We are convinced that petitioner had formed the intent to
evade tax before he filed his 1984 tax return on June 21, 1985.
No later than July 1984, petitioner told Thorpe that Burke’s
estate would not be paid a bonus because the $100,000 bonus was
contingent on the successful completion of the Shaktoolik
contracts. In September 1984, Mutual Life denied petitioner’s
request for payment under Burke’s life insurance policy. At some
time in late September or early October 1984, after Mutual Life
denied petitioner’s claim, petitioner proposed to Thorpe that the
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