- 51 -
Commissioner, 96 T.C. 858, 874 (1991), affd. 959 F.2d 16 (2d Cir.
1992); Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983). The
existence of fraud is a question of fact to be resolved upon
consideration of the entire record. Parks v. Commissioner, 94
T.C. 654, 660 (1990); Gajewski v. Commissioner, 67 T.C. 181, 199
(1976), affd. without published opinion 578 F.2d 1383 (8th Cir.
1978); Beaver v. Commissioner, 55 T.C. 85, 92 (1970).
A pattern of consistent underreporting of income may
indicate fraud, as does the failure to maintain adequate records
of income and expenses. Holland v. United States, 348 U.S. 121,
137 (1954); Korecky v. Commissioner, 781 F.2d 1566, 1568 (11th
Cir. 1986), affg. T.C. Memo. 1985-63; Lollis v. Commissioner, 595
F.2d 1189, 1192 (9th Cir. 1979), affg. T.C. Memo. 1976-15;
Grosshandler v. Commissioner, 75 T.C. 1, 20 (1980); Otsuki v.
Commissioner, 53 T.C. 96, 109 (1969).
The use of a corporation to disguise the personal nature of
expenses constitutes an indicium of fraud. Truesdell v.
Commissioner, 89 T.C. 1280, 1302-1303 (1987); Benes v.
Commissioner, 42 T.C. 358, 383 (1964), affd. 355 F.2d 929 (6th
Cir. 1966).
A corporation can act only through its officers and does not
escape responsibility for acts of its officers performed in that
capacity. DiLeo v. Commissioner, supra at 875; Federbush v.
Commissioner, 34 T.C. 740, 749 (1960), affd. 325 F.2d 1 (2d Cir.
1963). It follows that corporate fraud is established through
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