- 47 -
ledger cards in excess of those already produced, provided the
revenue agent with documents that purported to show that the
transferred notes were properly removed from CFC’s books and were
not personally owned by Mr. Cordes. Those documents consisted of
purported lien releases, each dated to coincide with the date the
note was removed from CFC’s records. The Oklahoma Tax
Commission’s records, however, evidenced that the liens were
actually released on later dates, indicating that those notes
were outstanding beyond the date CFC removed them from its
records. Mr. Cordes did not deny that the Oklahoma Tax
Commission’s records were accurate. It appears Mr. Cordes, or
someone acting on Mr. Cordes’s behalf, falsified many of those
records, intending to deceive the revenue agent, with the goal of
evading taxes known to be owed. This is yet another strong
indication of fraud.
Like CFC, Mr. Cordes’s sole defense to respondent’s
assertion of the fraud penalty was that he reasonably relied, in
good faith, on his accountant and the revenue agent. The facts
pertaining to Mr. Cordes’s reliance are identical to those we
examined with regard to CFC. The facts presented do not allow us
to find Mr. Cordes reasonably relied on professional advice in
good faith. Mr. Cordes did not show that he ever requested,
received, or relied on any advice with regard to the transactions
at issue.
Considering all the facts and circumstances, we hold
respondent has clearly and convincingly proven a portion of Mr.
Page: Previous 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 NextLast modified: May 25, 2011