Willis Clark - Page 15




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          existing case law:  (1) Understatement of income; (2) inadequate            
          records; (3) failure to file tax returns; (4) implausible or                
          inconsistent explanations of behavior; (5) concealing assets; and           
          (6) failure to cooperate with tax authorities.  The Court of                
          Appeals also identified dealing in cash as an additional fact               
          which would support a finding of fraud.  Id. at 308.                        
               Applying these considerations to the case at bar, we                   
          conclude that petitioner fraudulently intended to underpay tax              
          for each of the years at issue.  The record unequivocably                   
          demonstrates that petitioner understated his income, maintained             
          inadequate records, failed to cooperate with taxing authorities,            
          and engaged in extensive dealings in cash.  Moreover, the                   
          evidence reveals that petitioner expressly directed the                     
          preparation of false business records to conceal a significant              
          percentage of his cash transactions and then himself provided               
          those erroneous records to his return preparer.  The only logical           
          inference to be drawn from such circumstances is that petitioner            
          knowingly and actively structured his affairs with the specific             

















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