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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). Although fraudulent intent is never
presumed, it may be established by circumstantial evidence. This
is because direct proof of the taxpayer's intent is rarely
available. Powell v. Granquist, 252 F.2d 56, 61 (9th Cir. 1958);
Petzoldt v. Commissioner, 92 T.C. at 699; Rowlee v. Commissioner,
80 T.C. 1111, 1123 (1983). The taxpayer's entire course of
conduct may establish the requisite fraudulent intent. Otsuki v.
Commissioner, 53 T.C. at 106.
The Courts have identified a number of badges of fraud from
which fraudulent intent may be inferred. Those badges include:
(1) Substantial and consistent understatement of income, (2) in-
adequate records, (3) incomplete and erroneous information
provided to tax return preparer or bookkeeper, (4) destruction of
books and records, (5) implausible explanations of behavior, and
(6) lack of credibility of the taxpayer's testimony. Bradford v.
Commissioner, 796 F.2d 303, 307-308 (9th Cir. 1986), affg. T.C.
Memo. 1984-601; Toussaint v. Commissioner, 743 F.2d 309, 312 (5th
Cir. 1984), affg. T.C. Memo. 1984-25; Merritt v. Commissioner,
301 F.2d 484, 487 (5th Cir. 1962), affg. T.C. Memo. 1959-172;
Powell v. Granquist, supra at 59; Parks v. Commissioner, 94 T.C.
at 664-665. A pattern of underreporting income over an extended
period of time is indicative of fraud. Laurins v. Commissioner,
supra at 913; Petzoldt v. Commissioner, supra at 700. However,
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