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stipulated decision constitutes substantial evidence of fraud for
the years at issue in the instant case since: (1) The decision
involved similar items as those involved herein; i.e., the use of
nominee accounts to hold real estate sale proceeds; and (2) it
was entered before petitioner’s filing of each of his returns for
the 1985 through 1988 tax years. Further, in the course of the
previous years’ examinations, petitioner was apprised that the
use of trustees to hold real estate sale proceeds did not
insulate him from tax liability, and he agreed that those
transactions were taxable. Petitioner’s consistent
understatement of large amounts of such income over a period of
years is evidence of willful intent to evade tax. Otsuki v.
Commissioner, 53 T.C. at 108.
Petitioner filed Forms 2688 for each of the years at issue
in which he requested an extension of time for filing his
returns. In the Form 2688 for the 1985 tax year, he states as
his need for an extension: “Client derived substantially all his
income from a bulk land transaction, which was extremely complex.
Additional time is needed to analyze the transaction.”
Petitioner did not report income on his Form 1040 for 1985 from
any bulk land transaction, and he accepts on brief that he did
not provide any information to Mr. Kelly regarding any bulk land
sale transaction. We find his statement on the Form 2688, which
essentially admits having received income from a land sale, as
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