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Commissioner, 732 F.2d 1459, 1461 (6th Cir. 1984), affg. per
curiam T.C. Memo. 1982-603; Beaver v. Commissioner, 55 T.C. 85,
93 (1970). Some conduct and evidence can be classified under
more than one factor. The sophistication, education, and
intelligence of the taxpayer are relevant to this determination.
Niedringhaus v. Commissioner, 99 T.C. 202, 211 (1992). Several
of these indicia of fraud are present in this case.
1. Petitioner's Sophistication and Experience.
The sophistication and experience of a taxpayer are relevant
in determining whether fraud exists. Id.; see also Plunkett v.
Commissioner, 465 F.2d 299, 303 (7th Cir. 1972), affg. T.C. Memo.
1970-274; Iley v. Commissioner, 19 T.C. 631, 635 (1952). This
includes the taxpayer's educational background. Simms v.
Commissioner, 422 F.2d 340 (4th Cir. 1970), affg. T.C. Memo.
1968-298. Here, petitioner is an intelligent, educated man. In
addition to practicing dentistry during the years at issue,
petitioner was significantly involved in the real estate market,
leasing and selling various properties. Moreover, the account
statements for petitioner's foreign bank account indicate that he
was an active investor in securities, specifically U.S. Treasury
Bills. Having observed petitioner at trial and considering the
record, we cannot accept his claim of naivete. It is unlikely
that petitioner, as a result of his failure to report the foreign
interest income, would not have realized his income tax
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