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relating to his bookkeeping and tax return services. Petitioner’s
vague allegations regarding overreported Form 1099 income are not
credible. Among other things, petitioner did not identify
specifically which Forms 1099 reflected overstatements of income,
and petitioner did not indicate any specific amounts of alleged
overstatements.
Petitioner’s training and work as a bookkeeper and tax return
preparer, his failure to keep records of his bookkeeping and
personal tax return preparation activities, his misstatements to
respondent’s representatives, his pattern of filing petitioners’
income tax returns late, only after contact by respondent, and of
reporting thereon only Form 1099 income, not income from his
personal bookkeeping and tax preparation activities, taken together
indicate strongly and establish that petitioner fraudulently filed
the 1990, 1991, and 1992 joint Federal income tax returns.
Petitioner argues that respondent has not satisfied his burden
of proving fraud by clear and convincing evidence. Rule 142(b).
Certainly, some questions remain. Better documentation and more
effort could have been expended by respondent’s representatives to
rebut petitioner’s contention that the Form 1099 income was
overstated. We believe, however, and conclude that petitioner’s
fraud has been proven in a clear and convincing manner.
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Last modified: May 25, 2011