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Commissioner, 796 F.2d 303 (9th Cir. 1986), affg. T.C. Memo.
1984-601. As reflected in our findings of fact, Lisle did not
cooperate with respondent's agents at various stages of their
investigation of his tax returns. He withheld relevant documents
and information involving transactions with the Five.
Destruction of records and attempts to place records beyond
the reach of the revenue agents are evidence of fraud. See
Prokop v. Commissioner, 254 F.2d 544 (7th Cir. 1958), affg. T.C.
Memo. 1957-75; Estate of Beck v. Commissioner, 56 T.C. 297
(1971). We find that Lisle discarded and permitted others,
including Kanter, Gallenberger, and Weisgal, to discard
supporting income documentation, which was an intentional act
designed to conceal and evade the reporting and payment of
Federal income tax.
Misleading statements or actions are evidence of fraud. See
McManus v. Commissioner, T.C. Memo. 1972-200, affd. without
published opinion 486 F.2d 1399 (4th Cir. 1973). Lisle made the
following misleading statements to the IRS agents who interviewed
him during their examination of Kanter's returns:
(1) Lisle told the agents that Schaffel had transacted
business with Prudential prior to Kanter’s introduction of
Schaffel to Lisle;
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