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cooperative with the IRS and gave the IRS access to all of TECO’s
records.
Janet credibly testified that she made an honest attempt to
come up with the figures listed on the Forms 1099. Additionally,
the parties stipulated that Vernon and Janet intended for the
amounts listed on these Forms 1099 to cover the amount of
personal expenses paid for, and withdrawals made by, Vernon out
of TECO’s funds. Furthermore, RA Craddock testified that Vernon
stated that he wanted to add the amounts listed on the Forms 1099
to his income for the years in issue to make sure that he did not
owe any taxes.
At trial, respondent asked Janet7 whether she thought she
owed any more taxes. Janet responded: “There is no way on God’s
green earth that I thought I owed any taxes.” Vernon also
testified that when they filed their tax returns for 1987, 1988,
and 1989 he was certain that they had paid more taxes than they
owed. Vernon testified: “at this time, I was positive that I
was overpaying. I was really proud to pay that amount of tax.”
RA Craddock testified that Vernon was forthcoming and did
not do anything to hide or cover up issues RA Craddock raised.
Having had the opportunity to observe Janet and Vernon at trial,
we find that their testimony was honest, forthright, and
credible. Accordingly, we hold that their testimony does not
7 We note that prior to the trial of this case, no
representative of the IRS interviewed Janet.
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Last modified: May 25, 2011