Maurice D. and Elinor Taylor - Page 22

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             otherwise.  Petitioner's testimony that the records were in                                          
             disarray is also credible.  The lack of organized records, given                                     
             petitioner's criminal problems during the years in issue, does not                                   
             reflect an intent to evade taxes.  See Marinzulich v. Commissioner,                                  
             31 T.C. 487 (1958); Ouellette v. Commissioner, T.C. Memo. 1971-98.                                   
             Second, we believe petitioner never understood that he was supposed                                  
             to file the delinquent returns directly with Revenue Officer                                         
             Scilipoti, as respondent contends.  In this regard, Revenue Officer                                  
             Scilipoti testified only that it was his standard operating                                          
             procedure to ask taxpayers to submit delinquent returns directly to                                  
             him.    Revenue  Officer  Scilipoti  did  not  testify  that  he                                     
             specifically told petitioner to hand-deliver petitioners' tax                                        
             returns to him.  Additionally, there was never any clear                                             
             understanding about the filing of amended returns.  Mr. Mules                                        
             testified that he did not expect to prepare them, and petitioner                                     
             testified that he was not aware of his obligation to file amended                                    
             returns.  The failure to file amended returns does not evince an                                     
             intent to evade taxes.  Broadhead v. Commissioner, T.C. Memo. 1955-                                  
                    Third, apparently relying on the notes and mortgages executed                                 
             in favor of Irvington Federal, petitioner did not know that the                                      
             check-kiting scheme resulted in taxable income, and apparently                                       
             Revenue Officer Scilipoti did not recognize the issue either.  The                                   
             lack of knowledge that ill-gotten gains are taxable tends to show                                    

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