Albert M. Graham and Martha A. Graham - Page 42

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          received the $135,422 in client fees collected from Arnett, Chen,           
          and Markham in 1998.  Petitioner had those funds sent to O’Leary            
          and did not deposit them in his law firm account.  Petitioner               
          concealed those items from Lewellen.  Similarly, there is no                
          evidence that petitioner gave Lewellen information about or, with           
          the exception of the 1998 Schedules K-1, records of the cash and            
          property distributed by the Anis partnership in 1995 and 1998.              
               Petitioner testified that he realized Lewellen had not                 
          included the $135,422 of legal fees in petitioners’ 1998 income             
          because the figure on the Quicken printout “matched the figure on           
          the original tax return.”  Petitioner’s claim is implausible                
          because the Quicken printout did not include the $135,422.                  
               Similarly, petitioner did not tell Lewellen that $47,443.51            
          and an interest in two parcels of real property were acquired in            
          1995 by petitioners’ children as partners in the Anis partnership           
          in return for services petitioner performed in the Anis                     
          litigation.  Thus, petitioners’ claim that his failure to report            
          that income for 1995 was due to his reliance on Lewellen’s advice           
          is implausible.                                                             
                    c.   Having False or Inadequate Books and Records                 
               Petitioner’s Quicken records failed to include payments for            
          his services that were listed in the “secret list” kept by Edgar.           
          Petitioner knew about the secret list.  The secret list                     
          disappeared while it was in petitioner’s control.  A taxpayer's             






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