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clear and convincing evidence. Sec. 7454(a); Rule 142(b); Rowlee
v. Commissioner, 80 T.C. 1111, 1123 (1983). This burden is met
if it is shown that the taxpayer intended to evade taxes known to
be owing by conduct intended to conceal, mislead, or otherwise
prevent the collection of such taxes. Stoltzfus v. United
States, 398 F.2d 1002, 1004 (3d Cir. 1968).
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 is not presumed or
imputed; it must be established by independent evidence that
establishes a fraudulent intent on the taxpayer's part. Otsuki
v. Commissioner, 53 T.C. 96, 106 (1969). Because direct proof of
a taxpayer's intent is rarely available, fraud may be proved by
circumstantial evidence, and reasonable inferences may be drawn
from the relevant facts. Spies v. United States, 317 U.S. 492,
499 (1943); Stephenson v. Commissioner, 79 T.C. 995, 1006 (1982),
affd. 748 F.2d 331 (6th Cir. 1984). For example, an intent to
conceal or mislead may be inferred from a pattern of conduct,
Spies v. United States, supra at 499, or from a taxpayer's entire
course of conduct, Stone v. Commissioner, 56 T.C. 213, 223-224
(1971). Likewise, a pattern showing a consistent underreporting
of income, when accompanied by circumstances evidencing an intent
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