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personal-benefit amounts constitute income to him for 1990 and
1991, respectively.
At a time not disclosed by the record before September 1992,
respondent commenced examinations of petitioner and of Duncan &
Associates with respect to their respective taxable years 1990
and 1991.
On October 8, 1992, petitioner filed Federal income tax
(tax) returns for his taxable years 1990 (1990 return) and 1991
(1991 return) after the respective due dates for such returns had
passed. Petitioner did not file returns for his taxable years
1990 and 1991 until after respondent commenced an examination of
those returns because he did not want to pay the respective tax
due for such years. When petitioner filed his 1990 return and
1991 return on October 8, 1992, petitioner knew and understood
that each such return understated his income for each such year.
To illustrate, in his 1990 return and/or his 1991 return, peti-
tioner did not report as income the following: (1) The forgone
interest on petitioner’s outstanding loan balance with Duncan &
Associates for 1990 and 1991; (2) petitioner’s 1990 retirement
plan withdrawals; and (3) petitioner’s 1990 and 1991 personal-
benefit amounts, including petitioner’s 1991 check amount.
Moreover, in his 1990 return, petitioner did not report the 10-
percent additional tax imposed by section 72(t) on petitioner’s
1990 retirement plan withdrawals. In addition, although peti-
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