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her answer. Smith v. Commissioner, 926 F.2d at 1478; Rechtzigel
v. Commissioner, 79 T.C. 132, 142 n.11 (1982) ("the necessary
effect of defaulting petitioner is to deem admitted the
affirmative allegations in the answer irrespective of
petitioner's denial [in the reply]. The sanction thus converts
the denial into an admission."), affd. 703 F.2d 1063 (8th Cir.
1983). Entry of a default decision as to the additions to tax
for fraud (on which the Commissioner has the burden of proof) is
appropriate upon a determination, which is within this Court's
discretion, that the pleadings set forth sufficient facts to
support such a decision. Smith v. Commissioner, 91 T.C. at 1058-
1059.
Based upon the pleadings in this case, there is ample
support for finding that petitioner fraudulently underpaid his
taxes for the years in issue. The facts contained in the answer
are sufficient to establish the existence of fraudulent conduct
by petitioner. Prominent among the matters contained in the
pleadings are petitioner's admissions that: (1) The omission of
specific items of income for the years in issue is part of a
2-year pattern of intent to evade taxes; (2) petitioner
understated taxable income for those years; and (3) a part of
each understatement for the years in issue is due to fraud with
intent to evade taxes.
The above-pleaded facts clearly establish that petitioner
fraudulently underpaid his income taxes for the years in issue.
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