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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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