Yu-Yang Wu - Page 24




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          behavior; (5) concealment of assets; and (6) failure to cooperate           
          with tax authorities.  The Court of Appeals also stated that the            
          existence of the following facts additionally supports a finding            
          of fraudulent intent:  (1) Dealing in cash to avoid scrutiny of             
          finances, and (2) failing to make estimated tax payments.  See              
          id. at 308.                                                                 
               We affirm respondent’s determination of the fraud addition             
          to tax and penalties.  Petitioner’s conduct displays many of the            
          “badges” of fraud.                                                          
               As described in detail above, petitioner significantly                 
          understated income and maintained inadequate records to explain             
          the nature and sources of his deposits.                                     
               Petitioner also provided implausible and inconsistent                  
          explanations of his deposits.  He lied to Agent Bricker during              
          the criminal investigation, stating that not more than one or two           
          checks for the purchase of computer equipment had been deposited            
          into his personal account, and that any such checks deposited to            
          his account would have been the result of a bank error.  In fact,           
          as petitioner knew full well, hundreds of such checks had been              
          deposited to his account.  Petitioner also lied when he testified           
          that he did not tell customers to leave the payee lines blank, to           
          make PAC checks payable to him, or to pay in cash.  Barry                   
          Sharrow, Richard Eberli, Dexter Duncan, Dale Rutz, and Tim Earle            
          all testified that petitioner told them to leave the payee line             






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