Jack R. Prewitt and Shelley Prewitt - Page 18

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          to fraud.  Sec. 7454(a); Rule 142(b).  To meet this burden,                 
          respondent must show that petitioners intended to evade taxes               
          known to be owing by conduct intended to conceal, mislead, or               
          otherwise prevent the collection of taxes.  Stoltzfus v. United             
          States, 398 F.2d 1002, 1004 (3d Cir. 1968); Webb v. Commissioner,           
          394 F.2d 366, 378 (5th Cir. 1968), affg. T.C. Memo. 1966-81;                
          Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983).  Respondent              
          need not prove the precise amount of the underpayment resulting             
          from fraud--only that some part of the underpayment of tax for              
          each year at issue is attributable to fraud.  Lee v. United                 
          States, 466 F.2d 11, 16-17 (5th Cir. 1972); Plunkett v.                     
          Commissioner, 465 F.2d 299, 303 (7th Cir. 1972), affg. T.C. Memo.           
          1970-274.  Petitioners concede that there was unreported income             
          for each year at issue.  We accordingly must decide whether any             
          part of the underpayments was due to fraud.  Hebrank v.                     
          Commissioner, 81 T.C. 640 (1983).                                           
               The existence of fraud is a question of fact to be resolved            
          upon consideration of the entire record.  Gajewski v.                       
          Commissioner, 67 T.C. 181, 199 (1976), affd. without published              
          opinion 578 F.2d 1383 (8th Cir. 1978); Estate of Pittard v.                 
          Commissioner, 69 T.C. 391 (1977).  Fraud is not to be imputed or            
          presumed, but rather must be established by some independent                
          evidence of fraudulent intent.  Beaver v. Commissioner, 55 T.C.             
          85, 92 (1970); Otsuki v. Commissioner, 53 T.C. 96 (1969).  Fraud            
          may not be found under "circumstances which at the most create              
          only suspicion."  Davis v. Commissioner, 184 F.2d 86, 87 (10th              



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