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he failed to report this income on his 1994 return so that he
would not have to pay income tax on that amount; and (7) in
attempting to evade the additional taxes, he acted willfully;
that is, he acted voluntarily with the specific intent to violate
a known legal duty. Thus, petitioner admitted to consistently
underreporting income with the intent to violate his duty to pay
taxes due and owing.
Additionally, petitioner failed to inform his tax return
preparer of the distributions that he received from CNC.
Petitioner claims that he did not discuss his CNC investments or
the distributions that he received from CNC with his tax return
preparer because CNC did not issue a Form 1099 to petitioner for
any of the years at issue. Petitioner testified that rather than
inform his return preparer of the distributions from CNC and
raise the issue of the missing Forms 1099, petitioner chose to
conceal his CNC investments and distributions from his tax return
preparer. Petitioner admitted at trial that he also failed to
provide to his tax return preparer the “vouchers” that he
received from CNC, even though they purported to show the amount
of profit petitioner earned from his investments with CNC.
Although we do not find petitioner’s explanation of his
behavior to be, for the most part, credible, we do accept
petitioner’s claims that he cooperated with the agents during the
investigation and made no effort to hide or conceal anything
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