- 18 - Respondent must also show that petitioner intended to evade taxes known to be owing by conduct designed to conceal, mislead, or otherwise prevent the collection of taxes. Stoltzfus v. United States, 398 F.2d 1002, 1004 (3d Cir. 1968); 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. Gajewski v. Commissioner, 67 T.C. 181, 199 (1976), affd. without published opinion 578 F.2d 1383 (8th Cir. 1978). Fraud is never imputed or presumed. Instead, it must be affirmatively established by the Commissioner with clear and convincing evidence. Beaver v. Commissioner, 55 T.C. 85, 92 (1970). Since direct proof of a taxpayer's intent is rarely available, fraud may be proven with circumstantial evidence and reasonable inferences drawn from established facts. Spies v. United States, 317 U.S. 492, 500 (1943); Rowlee v. Commissioner, supra at 1123. Petitioner understated his taxable income for 1983 through 1985 and failed to file a return altogether for taxable year 1986. Such conduct constitutes strong evidence of fraud. Otsuki v. Commissioner, 53 T.C. 96, 107-108 (1969); Adams v. Commissioner, T.C. Memo. 1990-38. On the tax returns that he did file, petitioner falsely stated that his income was excludable because he resided outside the United States. When interviewed by IRS special agents concerning his Federal income tax liabilities for the years in issue, petitioner stated that he wasPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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