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attributable to the corporation’s discharge of his debt to the
estate. On Scanlon-Hull’s advice, the heirs refused to go along
with petitioner’s proposal. Having discussed the matter with
Scanlon-Hull before the end of 1984, petitioner understood that
his proposal was contrary to the terms of the buy-sell agreement
and would create an income tax burden on the estate. Despite the
heirs’ refusal to cooperate, and Scanlon-Hull’s admonitions,
petitioner instructed Cutshall to prepare and file petitioner’s
1984 Federal personal income tax return, which failed to report
as income INI’s payment of $50,000 to Burke’s estate, premised on
a renegotiation of the buy-sell agreement that, in reality, had
never occurred. Petitioner was determined to carry out his plan
of reforming the buy-sell agreement, with or without the
cooperation of the heirs. Petitioner’s conduct subsequent to the
filing of the 1984 and 1986 income tax returns, which includes
obtaining Thorpe’s signature and putting it on falsified
documents that would support the positions petitioner had taken
on his tax returns, and then submitting those documents to
respondent, convinces us that petitioner had formed the
fraudulent intent to evade income taxes on or before the time of
filing of his 1984 Federal personal income tax return, and this
intent continued through the time of filing of his 1986 return.
We commiserate with petitioner in his partially self-created
predicament, but we do not condone the course of action by which
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