- 33 -
80 T.C. 1111, 1123 (1983). Whether he meant to do so is a
factual question that must be resolved from the entire record.
DiLeo v. Commissioner, supra at 874; Gajewski v. Commissioner,
67 T.C. 181, 199 (1976), affd. without published opinion 578 F.2d
1383 (8th Cir. 1978). Affirmative evidence is required to prove
an allegation of fraud because fraud is never imputed or
presumed. Beaver v. Commissioner, 55 T.C. 85, 92 (1970).
Affirmative evidence includes circumstantial factors rising from
a taxpayer's course of conduct. Spies v. United States, 317 U.S.
492, 499 (1943); Rowlee v. Commissioner, supra at 1123; Stone v.
Commissioner, 56 T.C. 213, 223-224 (1971). Circumstantial
factors may show that the taxpayer meant to conceal, mislead, or
otherwise prevent the collection of his or her tax. Rowlee v.
Commissioner, supra at 1123-1124; Beaver v. Commissioner, supra
at 92-93. Oft-cited circumstantial factors, generally referred
to as "badges of fraud", include: (1) Understatement of income,
(2) inadequate records, (3) failure to file tax returns,
(4) implausible or inconsistent explanations of behavior,
(5) concealing assets, (6) failure to cooperate with tax
authorities, (7) engaging in illegal activities, (8) attempting
to conceal activities, (9) dealings in cash, and (10) failing to
make estimated tax payments. Bradford v. Commissioner, 796 F.2d
303, 307-308 (9th Cir. 1986), affg. T.C. Memo. 1984-601; see also
Meier v. Commissioner, 91 T.C. 273, 297-298 (1988).
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