-306-
parties over whom he had no control. Id. at 94-5254, 94-2 USTC
par. 50,479, at 85,769.
Less than a month later, the same District Court judge held
Gallenberger in contempt for a continuing failure to comply fully
with the IRS summonses. United States v. Administration Co., 74
AFTR 2d 94-5256, 94-2 USTC par. 50,480 (N.D. Ill. 1994).
Gallenberger’s contempt citation was affirmed on appeal. See
United States v. Administrative Enters., 46 F.3d 670 (7th Cir.
1995).
We infer from all the facts and circumstances that Ballard
agreed with Kanter’s strategy of obfuscation and delay in a
deliberate effort to hinder respondent’s efforts in these cases.
I. Conclusion
In the light of all these factors, we conclude respondent
has demonstrated by clear and convincing evidence that Kanter and
Ballard filed false and fraudulent tax returns for each of years
at issue. Specifically, we sustain respondent’s determinations
that (1) Kanter’s underpayments for 1978 to 1984 and 1986 to
1989, attributable to payments from The Five, were due to fraud
with intent to evade tax, and (2) Ballard’s underpayments for
1978 to 1982, 1984, and 1987 to 1989, attributable to payments
from The Five, were due to fraud with intent to evade tax.
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