Anthony and Linda Walters - Page 22

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          otherwise prevent the collection of taxes.  Rowlee v.                       
          Commissioner, 80 T.C. 1111, 1123 (1983).  When fraud is                     
          determined for more than 1 taxable year, the Commissioner must              
          show that an underpayment exists and that some part of the                  
          underpayment was due to fraud for each year.  Otsuki v.                     
          Commissioner, 53 T.C. 96, 105 (1969).                                       
               The existence of fraud is a factual question to be                     
          determined upon a consideration of the entire record.                       
          Grosshandler v. Commissioner, supra at 19.  Fraud cannot be                 
          presumed or imputed but must be established by clear and                    
          convincing evidence.  Id. at 19.  Fraud cannot be found if the              
          circumstances only create a suspicion of its existence.  Petzoldt           
          v. Commissioner, 92 T.C. 661, 700 (1989).  Because direct proof             
          of a taxpayer's intent is rarely available, fraud may be proved             
          by circumstantial evidence.  Spies v. United States, 317 U.S. 492           
          (1943).  Fraud may be properly inferred where a taxpayer's entire           
          course of conduct establishes the requisite fraudulent intent.              
          Kotmair v. Commissioner, 86 T.C. 1253, 1260 (1986).  The intent             
          to conceal or mislead may be inferred from a pattern of conduct.            
          See Spies v. United States, supra at 499; Guinan v. Commissioner,           
          T.C. Memo. 1991-190.                                                        
               Courts rely on a number of indicia of fraud when they decide           
          civil tax fraud cases.  Edwards v. Commissioner, T.C. Memo. 1995-           
          77.  Although no single factor is necessarily sufficient to                 
          establish fraud, the existence of several indicia is persuasive             




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