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deficiencies and failure to file timely returns are irrelevant to
the fraud issue. Thus, petitioner’s failure: (1) To fully
substantiate claimed deductions, (2) to report substantial
amounts of income for the years in issue, and (3) to report
income in prior taxable years is a pattern of conduct probative
of fraud. See Estate of Upshaw v. Commissioner, 416 F.2d at 741.
2. Failing To Maintain Adequate Records
Petitioner admitted he was a poor bookkeeper. Although he
claimed to “keep everything”: “I have every receipt. I have
everything. I just don’t have it organized, and I didn’t get a
chance to substantiate”, he did not, however, maintain his bank
records. Petitioner did not attempt to obtain bank records for
2000 because he claimed that in 2004 it was too costly for him to
do so. The extent of petitioner’s record maintenance was
described by Agent Davis as three plastic tubs containing records
spanning various years.
Although petitioner kept some records, he did not give any
records to Agent Riley regarding his income when Agent Riley
asked petitioner to file returns for the years in issue. When
the records were eventually provided to the IRS, they were
insufficient to substantiate many claimed deductions. For
example, when Agent Davis examined petitioner’s records with
respect to contributions and meals and travel expenses for the
years in issue, he allowed only some of the deductions, noting
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