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Florida, address in his correspondence with the Court.
Petitioner did not notify the Court of a change of address.
At trial, the Court received a copy of the unfiled 1994
return which had been submitted to Countrywide. Petitioner
prepared and signed under penalty of perjury the unfiled return,
and he used it in support of a mortgage application with
Countrywide Mortgage Company. On the unfiled return, petitioner
reported gross income of $46,850 on the Schedule C for BHTC, as
opposed to gross income of $17,475 as reported on the return
filed with the Internal Revenue Service. Petitioner also
reported a profit of $11,687 for BHTC on the unfiled return, as
opposed to a loss of $14,721 as reported on the filed return.
We find that many of petitioner’s representations and his
uncorroborated testimony are patently unreliable.2 The Court is
not persuaded by petitioner’s belated rationalizations in
explaining his conduct and claimed deductions. Based on
petitioner’s misrepresentations, the Court had some difficulty
discerning the truth of petitioner’s assertions or accuracy as to
the claimed deductions for expenses. It appears likely that
petitioner underreported income and overstated deductions. As
respondent has neither alleged that petitioner omitted income nor
2 Sec. 7491 does not affect the burden of proof where the
taxpayer fails to produce credible evidence or substantiate
deductions. Higbee v. Commissioner, 116 T.C. 438 (2001).
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Last modified: May 25, 2011