- 11 -
Commissioner, supra at 661; Rowlee v. Commissioner, 80 T.C. 1111,
1123 (1983).
2. Underpayment
Petitioner concedes that he understated his tax for each of
the years in issue.
3. Fraudulent Intent
Respondent must prove by clear and convincing evidence
that petitioner had fraudulent intent. Parks v. Commissioner,
supra at 664. For purposes of section 6653(b), fraud means
actual, intentional wrongdoing, Mitchell v. Commissioner, 118
F.2d 308, 310 (5th Cir. 1941), revg. 40 B.T.A. 424 (1939), or
the intentional commission of an act for the specific purpose
of evading a tax believed to be owing, Webb v. Commissioner,
394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo. 1966-81.
a. Direct Evidence of Fraud
There is direct evidence of petitioner’s fraud because
petitioner admitted in his plea agreement that he tried to evade
tax that he knew he owed for 1985, 1986, and 1987. Direct
evidence can be sufficient to support a finding of fraudulent
intent. Catalfo v. Commissioner, T.C. Memo. 1995-106 (taxpayer’s
admissions connected with plea agreement established fraudulent
intent); Larson v. Commissioner, T.C. Memo. 1994-302, affd.
without published opinion 60 F.3d 830 (8th Cir. 1995) (plea
agreement was evidence of fraudulent intent).
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