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found guilty. While a conviction under section 7206(1)
establishes neither intent to evade tax nor the existence of an
underpayment, since neither is an element of the crime, the
indictment and judgment here are nonetheless clear and convincing
evidence that petitioner received unreported receipts from the
marijuana operations. See Wright v. Commissioner, 84 T.C. 636,
643 (1985); Goodwin v. Commissioner, 73 T.C. 215, 229 (1979),
overruled on another issue Wright v. Commissioner, supra.
Respondent has also introduced into evidence copies of
checks written by Mederic J. Lord payable to, and endorsed by,
petitioner. These checks total $6,171.04, and several have
notations that allude to “siding”. Additionally, respondent
introduced a copy of a document handwritten by petitioner
referencing certain of the foregoing checks and also
acknowledging receipt of $3,000 in cash. This document is
supported by copies of bank slips showing a “cash out”
transaction from an account of M.J. Lord. We conclude that
respondent has adduced clear proof of receipts of unreported
construction income from M.J. Lord in 1991.
2. Underpayment
As previously explained, the above unreported gross receipts
will translate into an underpayment only if not exceeded by costs
of goods sold and deductible expenses. We thus turn to the
extent to which petitioner has carried his burden of coming
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