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Respondent cites petitioner’s resumption of filing returns
for 1998 and later years, after the investigation of him had
commenced, as evidence that petitioner was well aware of his
Federal tax obligations. Petitioner argues that he filed returns
for 1998 and subsequent years because different laws apply to
corporations. It appears, however, that petitioner continued to
receive compensation for services that he personally performed
and reported that compensation on his tax returns for 1998 and
subsequent years. Notwithstanding his attempt to justify his
prior delinquencies, we believe that petitioner was knowledgeable
about his tax-paying responsibilities but “‘consciously decided
to unilaterally opt out of our system of taxation’” until the IRS
commenced its investigation of him. Niedringhaus v.
Commissioner, supra at 212-213 (quoting Miller v. Commissioner,
94 T.C. 316, 335 (1990)).
We are convinced that petitioner’s refusal to file tax
returns was willful and with knowledge that he was obligated to
file them and pay tax on his income. His sudden “discovery” of
his frivolous positions after many years of apparent compliance,
his failure to consult any professionals or authorities on the
subject, and his refusal to acknowledge his errors through the
time of trial of this case undermine his claims of good-faith
belief. Similar evidence has been held sufficient to support a
criminal conviction in other cases. See, e.g., United States v.
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