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Controls, Inc., in 1996 in time to include the amount on his
return is implausible, given that the return was not filed until
October 21, 1996, and Johnson Controls, Inc., had a statutory
obligation to mail the form to him by the end of the preceding
January.10
Petitioner’s attempts to identify nontaxable sources of
income are similarly implausible. His claim that his mother gave
him $10,000 was not substantiated. His claim that he deposited
rent receipts belonging to his mother into his own checking
account, and then paid over the receipts to his mother, was later
qualified when the examining agent was unable to trace these
amounts through his account. In the qualified version,
petitioner claimed that the rent receipts were sometimes expended
on repairs and sometimes kept by him for a period of time before
being repaid to his mother. Even if the claims regarding the
rent receipts were accepted, they would at most account for
$11,700 of nontaxable source income annually, far less than the
amounts petitioner failed to report in each year.
In reaching our conclusion that petitioner’s various
attempts to explain to the examining agent his failure to report
income constitute evidence of fraud, we also take note of the
10 Information returns must be delivered to the person with
respect to whom the information is required by Jan. 31 of the
year following the calendar year in which payment of the reported
income is made. See sec. 6041(d).
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