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decided not to maintain books and records, and they destroyed any
records they had for the years at issue. They concealed their
assets through the use of their nominee, the Elknur Family
Limited Partnership, and they refused to cooperate with
respondent’s agents. They not only refused to cooperate with
respondent’s agents, but they made unsuccessful efforts to quash
or otherwise interfere with respondent’s summonses. They
intimidated the revenue agent by appearing at the summons
conference and questioning him in the presence of four other
individuals who refused to identify themselves. They also relied
upon frivolous arguments to impede or otherwise hinder
respondent’s income tax determinations and this Court’s
consideration of this case.
Considering all of the facts and circumstances of this case,
we find that respondent has proven by clear and convincing
evidence that petitioners’ failure to file an income tax return
for the years at issue was fraudulent. Accordingly, petitioners
are liable for the section 6651(f) addition to tax for the years
at issue.
Because of our holding regarding the addition to tax under
section 6651(f) for fraudulent failure to file, we need not
address whether petitioners are liable for the addition to tax
under section 6651(a)(1) for failure to file timely.
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