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petitioners’ overstatement of cost of goods sold. Respondent has
not demonstrated that any such overstatements were fraudulent,
rather than the result of negligence or a misunderstanding of the
law.
Respondent also accuses petitioner of concealing one of his
bank accounts from respondent’s agent, thus indicating a
fraudulent intent to conceal income. This bank account,
NationsBank Account No. 5500026-201-8, was excluded from the net
worth analysis attached to respondent’s Answer to Amended
Petition but was included on the net worth analysis attached to
respondent’s brief. There is no direct evidence that petitioner
attempted to conceal this account. Respondent’s agent conceded
at trial that petitioner signed a release permitting her to
examine his records at NationsBank. The agent also testified
that she did not review petitioner’s records for 1994 and 1995.
The evidence shows that Account No. 55000026-201-8 was not opened
until 1994. We conclude that the evidence does not support a
finding that petitioner deliberately failed to disclose this
account.
Nor has respondent convinced us that petitioner’s extensive
use of cash is evidence of fraud. We believe it likely that the
clientele of Murphy’s, most of whom were expected to make
payments on their own paydays, themselves dealt extensively in
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