Mahendra K. Tandon - Page 28

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               Failure to maintain adequate books and records may be                  
          indicative of fraud.  Truesdell v. Commissioner, 89 T.C. 1280,              
          1302 (1987); Gajewski v. Commissioner, 67 T.C. at 200.  As we               
          found earlier, petitioner failed to maintain adequate books and             
          records.  This is evidence of fraud.                                        
                    4.   Intent To Mislead                                            
               Misleading statements to an investigating agent may be                 
          evidence of fraud.  See Gajewski v. Commissioner, supra at 200.             
          Petitioner misled Ms. Lippert--he told her that he deposited all            
          medical receipts in one bank account when in fact he deposited              
          medical receipts into at least seven accounts (including his own            
          personal accounts).  Petitioner also misled Mr. Dever--petitioner           
          told Mr. Dever that he reported all items deposited into his bank           
          accounts on his tax returns, but he later admitted that he did              
          not report some of these items.  This is evidence of fraud.                 
                    5.   Lack of Credibility                                          
               Petitioner's lack of credibility is a factor in considering            
          the fraud issue.  See Toussaint v. Commissioner, 743 F.2d 309,              
          312 (5th Cir. 1984), affg. T.C. Memo. 1984-25.  As we stated                
          earlier, petitioner's testimony was at times questionable, vague,           
          conclusory, not credible, and unsupported by the evidence in the            
          record.  This is evidence of fraud.                                         
                    6.   Filing False Documents (The Criminal Tax                     

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