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must consider the actions of Mr. Duncan, petitioner’s president,
corporate secretary, and sole shareholder.
The record in this case contains indicia of fraud by
petitioner. When petitioner filed its 1990 return and 1991
return, petitioner through Mr. Duncan knew and understood that
each such return understated petitioner’s income for each such
year. In order to mislead respondent’s examining agents with
respect to the understatement of petitioner’s income for its
taxable years 1990 and 1991, Mr. Duncan and petitioner’s accoun-
tant directed, prepared, and/or caused others to prepare certain
false documents that were presented to respondent’s examining
agents.8 Moreover, in Mr. Duncan’s March 31, 1998 plea agree-
ment, Mr. Duncan acknowledged that he fraudulently and corruptly
obstructed and impeded, and endeavored to obstruct and impede,
the due administration of the Code by knowingly creating and
causing the creation of false and fraudulent documents for the
purpose of obstructing and impeding respondent’s examination of
petitioner with respect to its taxable years 1990 and 1991 and
for the purpose of concealing from respondent the falsity of
petitioner’s returns for each such year. In Mr. Duncan’s March
31, 1998 plea agreement, Mr. Duncan further acknowledged that
8On Mar. 24, 1993, Mr. Duncan told respondent’s revenue
agents that he and one of petitioner’s employees had participated
in the falsification of invoices, receipts, and check register
stubs.
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