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credible witnesses. Mr. Coyle admitted that he received the
receipts but did not keep them. Mr. Coyle’s counsel explained
that Mr. Coyle “would reconcile his books and get with his tax
man at the end of the tax year, give this information to him, and
then, he had no need to keep these receipts.” We are not
convinced that an experienced businessperson such as Mr. Coyle
would not understand the need to keep receipts. See Korecky v.
Commissioner, supra.
Mr. Coyle hired Mr. Herman to prepare his Federal income tax
returns. Mr. Herman testified that Mr. Coyle did not provide him
with many original records and documents when he was preparing
Regal’s and Mr. Coyle’s tax returns. Rather, Mr. Coyle provided
him with totals of dollar amounts. Mr. Herman’s testimony
conflicts with Mr. Coyle’s testimony because Mr. Coyle had
asserted that he provided receipts to Mr. Herman. We are
inclined to accept Mr. Herman’s testimony.
Mr. Coyle and respondent entered into an offer in compromise
for 1986, 1989, 1990, 1991, and 1992. In a statement attached to
his offer in compromise, Mr. Coyle indicated that he was
“employed as a mobile home salesman”. From the facts in the
record, it is apparent that during many of those years Mr. Coyle
was not only an employee, but he was also a majority shareholder
with control over Regal. Mr. Coyle’s dishonesty in his prior
dealings with respondent is an indication of fraud.
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