- 36 -
for 1988. Petitioner admitted that he knew this omitted income
was taxable. He also admitted that he made copies of the checks
he received from various attorneys who paid him for medical
services rendered to numerous personal injury patients. These
understatements are strong evidence of fraud. Truesdell v.
Commissioner, 89 T.C. 1280, 1302 (1987).
d. Inadequate Books and Records
A taxpayer's failure to maintain adequate and accurate
records is indicative of fraud. Merritt v. Commissioner, 301
F.2d 484, 487 (5th Cir. 1962), affg. T.C. Memo. 1959-172.
Here petitioner maintained certain records that were
convenient for his use, he destroyed other records, and he failed
to maintain records that would have accurately reflected his
income in 1987 and 1988. We think his records were intentionally
incomplete. He had patients sign a sheet when they arrived at
his office. The retention of these sheets could have assisted
him in determining his income each year. But, instead, the
sheets were destroyed each day. Further, there was no evidence
of any ledger cards maintained to assist in recordkeeping.
Petitioner only copied the checks from attorneys, and he stated
that the purpose for this action was to assure that he was paid.
By comparison, he obviously was not concerned with having an
accurate tax record of the income he received from those
attorneys.
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