Cordes Finance Corporation - Page 23

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                taxes.  Stoltzfus v. United States, 398 F.2d 1002, 1004                                  
                (3d Cir. 1968); Rowlee v. Commissioner, 80 T.C. 1111,                                    
                1123 (1983).  The issue is one of fact to be determined                                  
                upon a consideration of the entire record.  Rowlee v.                                    
                Commissioner, supra; Beaver v. Commissioner, 55 T.C. 85,                                 
                92 (1970).                                                                               
                      In view of the fact that fraudulent intent can                                     
                seldom be established by direct proof of the taxpayer's                                  
                intention, fraud is usually established by drawing                                       
                inferences from the taxpayer’s entire course of conduct.                                 
                Parks v. Commissioner, 94 T.C. 654, 664 (1990); Estate of                                
                Beck v. Commissioner, 56 T.C. 297, 363 (1971).  The courts                               
                have developed several indicia or "badges" of fraudulent                                 
                behavior.  These “badges of fraud” include conduct such                                  
                as consistently understating income, Estate of Upshaw v.                                 
                Commissioner, 416 F.2d 737 (7th Cir. 1969); Parks v.                                     
                Commissioner, supra; failing to cooperate with tax                                       
                authorities, Zell v. Commissioner, 763 F.2d 1139, 1146                                   
                (10th Cir. 1985), affg. T.C. Memo. 1984-152; and any other                               
                conduct likely to mislead or conceal, see Estate of                                      
                Schneider v. Commissioner, 29 T.C. 940, 954-955 (1958).                                  
                We note that since petitioner is a corporation, it can                                   
                act only through its officers.  Federbush v. Commissioner,                               
                34 T.C. 740, 749 (1960), affd. 325 F.2d 1 (2d Cir. 1963).                                
                      In this case, respondent has proven that $127,889 of                               
                petitioner's income in 1990 was diverted to the personal                                 



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