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3. Failing To Maintain Adequate Records
A taxpayer’s destruction of books and records of his or her
income-producing activity further demonstrates a willful attempt
to defeat and evade taxes. Spies v. United States, 317 U.S. at
499; Toushin v. Commissioner, 223 F.3d 642, 647 (7th Cir. 2000),
affg. T.C. Memo. 1999-171. Mr. Runkle failed to maintain books
and records for any of his income-producing activities for the
years at issue. In fact, Mr. Runkle testified he regularly threw
away his records of income and expenses once he determined
whether he had a profit or loss or upon balancing his checkbook.
While Mr. Runkle maintained check registers for the years at
issue, he threw them away after he balanced the checkbook.
Likewise, Mrs. Runkle destroyed her books and records for the
Canyon Kennel for the years at issue. While she briefly retained
check registers for the kennel activity, she also threw away
these records. She testified that she threw away the bank
statement after she balanced the checkbook during the years at
issue. Through these actions, respondent argues, and we agree,
that petitioners sought to conceal their income tax income
liability and succeeded in delaying respondent’s determination
for the years at issue. Petitioners’ conscious decisions not to
maintain books and records, coupled with their individual
decisions to destroy any available records, demonstrates their
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