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from the dermatology practice was distributed to petitioner in
1996 in the form of a dividend. Petitioner did not report, and
paid no tax on, this dividend in 1996.
This factor weighs against petitioner.
2. Maintaining Inadequate Records
Lack of records is indicative of fraudulent intent. Id.
Petitioner maintained inadequate records. She kept few
personal records of the bankruptcy scheme or the transactions
surrounding the transfer of the $1,149,048 from the Sanwa account
to the personal Swiss bank account.
This factor weighs against petitioner.
3. Failing To File Tax Return
Failing to file tax returns is indicative of fraudulent
intent. Id.
Although petitioner filed the 1996 return timely, that
action is negated by the fact that she intentionally omitted from
that return her receipt of the $1,149,048 from BBL and attempted
to conceal her receipt of those funds by filing untimely,
incorrect, and fraudulent tax returns for BBL for 1992, 1993,
1994, and 1995.
This factor is neutral.
4. Giving Implausible or Inconsistent Explanations of
Behavior
Giving implausible or inconsistent explanations of behavior
is indicative of fraud. Id.
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