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taxable years 1987, 1988, and 1989, with the intent to evade the
payment of taxes on such business transactions in each respective
year.
36. [Petitioner] failed to produce any records of [his]
business or personal activities for respondent during the
examination of [his] income tax liabilities for the taxable years
1987, 1988, and 1989.
37. [Petitioner's] failure to produce any records of [his]
business or personal activities for respondent during the
examination of [petitioner's] income tax liabilities for the
taxable years 1987, 1988, and 1989 was fraudulent with the intent
to evade the payment of taxes for each respective year.
In support of a finding of fraud, courts have relied on a
number of indicia of fraud in deciding section 6653(b) and
section 6651(f) cases. Indicia of fraud include: (1) A pattern
of understatement of income, (2) maintaining inadequate books and
records, (3) failing to file tax returns, (4) giving implausible
or inconsistent explanations of behavior, (5) concealing assets,
(6) failing to cooperate with taxing authorities, (7) engaging in
illegal activities, (8) attempting to conceal illegal activities,
(9) dealing in cash, and (10) failing to make estimated tax
payments. Recklitis v. Commissioner, 91 T.C. 874, 910 (1988).
Although no single factor is necessarily dispositive on the issue
of fraud, the existence of several indicia is persuasive
circumstantial evidence. Petzoldt v. Commissioner, 92 T.C.
at 700. Respondent argues that through the deemed admissions
fraud is clearly and convincingly established by petitioner's
conduct of dealing in cash, petitioner's failure to file tax
returns and report income earned, and petitioner's failure to
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