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penalty under section 66631 for petitioner’s 1990 taxable year.
The sole issue remaining for our consideration is whether
petitioner is liable for the civil fraud penalty under section
6663 for the taxable year 1990.
FINDINGS OF FACT
At the time of the filing of the petition in this case,
petitioner resided in Haiti. For the taxable year 1990,
petitioner derived income in Florida from tax return preparation,
selling automobile insurance, and providing immigration services.
His business activities were conducted predominantly in cash.
Petitioner reported only $7,481 of insurance sales income, $6,235
of bank interest income, and a total tax of $1,479.
Sometime in May or June of 1992, respondent began an audit
of petitioner’s 1990 tax return.2 When initially asked for
records related to his business activities, petitioner did not
produce any income records or bank statements, claiming that they
were lost. Petitioner did produce an organized collection of
checks in connection with his expenses. Later, petitioner’s
accountant produced records relating to petitioner’s insurance
sales and records concerning more than 1,000 customers for whom
1Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable year at
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
2Respondent also audited the 1989 and 1991 returns, but
those returns are not at issue in this case.
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