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unless the taxpayer establishes that some part of the
underpayment is not attributable to fraud. Sec. 6663(b).
Respondent's burden is met if it is shown that the taxpayer
intended to conceal, mislead, or otherwise prevent the collection
of taxes. Stoltzfus v. United States, 398 F.2d 1002, 1004 (3d
Cir. 1968); Webb v. Commissioner, 394 F.2d 366, 377 (5th Cir.
1968), affg. T.C. Memo. 1966-81.
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 will never be
presumed. Beaver v. Commissioner, 55 T.C. 85, 92 (1970). Fraud
may, however, 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); Otsuki v. Commissioner, 53 T.C. 96, 105-106 (1969).
A pattern of consistent underreporting of income for a number of
years, when accompanied by other circumstances showing an intent
to conceal, justifies the inference of fraud as to each of the
years. Holland v. United States, 348 U.S. 121, 137 (1954);
Otsuki v. Commissioner, supra.
Under section 61, gross income includes "all income from
whatever source derived." Where a taxpayer keeps no books and
records, or the taxpayer fails to file a return from which his
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