- 25 -
any records of the amounts that petitioner was receiving.
Nothing in the entire course of conduct surrounding these
payments indicates that a legitimate loan was being repaid.
Based upon these indicia, we find that respondent has
carried the burden of showing by clear and convincing evidence
that petitioner's failure to report income for 1987, 1988, 1989,
and 1990 was fraudulent with the intent to evade his tax.
Because we have found that respondent has proven fraud with
respect to portions of the underpayments, the entire
underpayments shall be treated as attributable to fraud because
petitioner has not established by a preponderance of the evidence
that any portion is not attributable to fraud. Secs. 6653(b)(2),
6663(b).
To reflect the foregoing,
Decision will be entered
under Rule 155.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Last modified: May 25, 2011