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that Mr. Beck attempted to structure cash purchases to avoid the
requirements for reporting cash transactions.
6. Taxpayer’s Experience and Knowledge, Especially
Knowledge of Tax Laws
In determining the presence or absence of fraud, we "must
consider the native equipment and the training and experience of
the party charged." Iley v. Commissioner, 19 T.C. at 635. Mr.
Beck did not consult an accountant or any other professional for
advice in preparing the returns of Beck's Liquors or his
individual returns. He has no special training or education.
7. Taxpayer's Implausible Explanations of Conduct
Given at Trial
Mr. Beck's testimony was plausible and, we believe,
generally truthful. At the trial of this case, he answered
questions directly and candidly and did not appear to be evasive
or deceptive. He impressed us as a sincere, although mistaken,
individual. We may discount testimony which we find to be
unworthy of belief, but we may not arbitrarily disregard
testimony that is credible and uncontradicted, Conti v.
Commissioner, 39 F.3d 658, 664 (6th Cir. 1994), affg. and
remanding 99 T.C. 370 (1992), and T.C. Memo. 1992-616.
8. Participation in Illegal Activities or Concealment
of an Illegal Activity
Respondent does not allege that Mr. Beck participated in any
illegal activities or that he tried to conceal an illegal
activity.
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