Dwight L. McKenna and Beverly S. McKenna - Page 38

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                  f.  Implausible or Inconsistent Explanations of Behavior                              
                  Petitioner maintains that he did not intend to fraudulently                           
            understate his income for 1987 and 1988.  His actions, however,                             
            are consistent with those of a person possessing the intent to                              
            defraud.  For example, petitioner asserts that he gave Mr. Bruno                            
            net income figures for his medical practice and that Mr. Bruno                              
            made a mistake by placing net income on the gross income line of                            
            Schedule C.  This assertion is factually implausible and                                    
            unsupported by the evidence.  Mr. Bruno repeatedly testified, and                           
            we think truthfully so, that the income figures given to him by                             
            petitioner for 1987 and 1988 were the amounts of petitioner's                               
            total gross income for each year.  Petitioner not only failed to                            
            tell Mr. Bruno there was a mistake on the gross income line of                              
            the Schedule C, but he also never mentioned this error to Ms.                               
            Davis during the civil examination.  Consequently, it is                                    
            difficult to believe that petitioner could have failed to notice                            
            that the total amount of the checks he received from personal                               
            injury attorneys so greatly exceeded his reported gross income.                             
            The more plausible explanation of his alleged discovery of this                             
            so-called mistake, however, is that there was no mistake.  It was                           
            merely petitioner's explanation designed to shift the culpability                           
            and blame away from himself.                                                                
                  As further support for his reliance argument, petitioner                              
            emphasized that he knew nothing about taxes, recordkeeping, or                              






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