- 9 - burden through affirmative evidence because fraud is never imputed or presumed. Beaver v. Commissioner, 55 T.C. 85, 92 (1970). A taxpayer's entire course of conduct can be indicative of fraud. Stone v. Commissioner, 56 T.C. 213, 223-224 (1971); Otsuki v. Commissioner, 53 T.C. 96, 105-106 (1969). Furthermore, a taxpayer's fraudulent original return is not purged by the filing of a subsequent amended return. Badaracco v. Commissioner, 464 U.S. 386, 394 (1984). A. Underpayment of Tax Petitioners admitted in their amended returns that they had underreported, in their original returns, interest income from foreign banks for each year in issue. Although the filing of those amended returns is not an admission of fraudulent intent, it is an admission of an underpayment of tax for each of those years. See id. at 399. B. Fraudulent Intent Next, respondent must prove that a portion of such underpayment for each taxable year was due to fraud. Professional Servs. v. Commissioner, 79 T.C. 888, 930 (1982). Fraud may be proved by circumstantial evidence because direct proof of the taxpayer's intent is rarely available. The taxpayer's entire course of conduct may establish the requisite fraudulent intent. Stone v. Commissioner, 56 T.C. 213, 223-224 (1971).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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