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2. Fraudulent Intent
Under section 6653(b)(1)(A) for 1987, section 6653(b)(1) for
1988, and section 6651(f) for 1989, respondent must show that
petitioner intended to conceal, mislead, or otherwise prevent the
collection of taxes. Stoltzfus v. United States, supra at 1004;
Webb v. Commissioner, 394 F.2d 366, 377 (5th Cir. 1968), affg.
T.C. Memo. 1966-81; Rowlee v. Commissioner, supra at 1123.
Because direct proof of a taxpayer's intent is rarely available,
fraud may be proven by circumstantial evidence, and reasonable
inferences may be drawn from the relevant facts. Spies v. United
States, supra at 499; Stephenson v. Commissioner, 79 T.C. 995,
1006 (1982), affd. 748 F.2d 331 (6th Cir. 1984); Collins v.
Commissioner, T.C. Memo. 1994-409.
Because matters deemed admitted pursuant to Rule 90 are
conclusively established and may be sufficient to support the
granting of a motion for summary judgment, respondent may
establish fraud by relying on petitioner's deemed admissions.
Marshall v. Commissioner, 85 T.C. 267, 272-273 (1985); Morrison
v. Commissioner, 81 T.C. 644, 651 (1983); Doncaster v.
Commissioner, 77 T.C. 334, 336 (1981). Petitioner is deemed to
have admitted under Rule 90(c) that
34. [Petitioner's] failure to file a federal income tax
return for each of the taxable years 1987, 1988, and 1989, was
fraudulent with the intent to evade the payment of taxes on
taxable income earned in each respective year.
35. [Petitioner] failed to maintain complete and adequate
records of the activities [he] conducted in cash during the
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