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over a number of years is, standing alone, highly persuasive
evidence of fraudulent intent. See Kurnick v. Commissioner, 232
F.2d 678 (6th Cir. 1956), affg. T.C. Memo. 1955-31; Reash v.
Commissioner, 218 F.2d 954 (6th Cir. 1954), affg. per curiam a
Memorandum Opinion of this Court dated Dec. 28, 1953. In this
case, there is a substantial and consistent underpayment of tax
for each of the years in issue.
2. Extensive Dealings in Cash
Dealing in cash to avoid scrutiny of one’s finances is a
badge of fraud. See Bradford v. Commissioner, 796 F.2d 303, 307-
308 (9th Cir. 1986), affg. T.C. Memo. 1984-601. Petitioner made
numerous and substantial cash transactions during the 5 years in
issue.
During the years in issue, Mrs. Temple signed checks payable
to cash totaling $59,223 that were drawn on four different
accounts, all of which were fashioned as trust accounts. Mrs.
Temple was not a named trustee on any of these accounts. For the
short period of time that B. L. Holtzauer replaced petitioner and
Mrs. Temple on the Dollar Savings 320 account, checks totaling
$4,045 were issued payable to cash. The last check issued to
cash in the amount of $2,045 was used toward the purchase of a
bank check for $2,645. The Dollar Savings 320 account was
closed, and the proceeds deposited into an account in Nassau,
Bahamas.
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