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Commissioner, 394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo.
1966-81.
Fraudulent intent may be inferred from various kinds of
circumstantial evidence, or "badges of fraud", including an
understatement of income, dealings in cash, and implausible or
inconsistent explanations of behavior. Bradford v. Commissioner,
796 F.2d 303, 307 (9th Cir. 1986), affg. T.C. Memo. 1984-601;
Meier v. Commissioner, 91 T.C. 273, 297-298 (1988).
The record in this case is replete with evidence of
petitioners' fraudulent intent. Petitioners understated their
income in 1986. They deposited large amounts of cash and made
large expenditures of cash. Moreover, petitioners' explanation
of the source of the cash deposits and cash payments is
implausible; their claims of a cash hoard and other trial
testimony are unsupported and not worthy of belief.
Respondent has proven by clear and convincing evidence an
underpayment of tax due to fraud for 1986. Petitioners have not
proven that the amount determined by respondent is incorrect or
that any part of the underpayment is not attributable to fraud.
See sec. 6653(b)(2).
Petitioners contend that we should consider the
constitutional concept of double jeopardy in reaching our
decision regarding the fraud addition to tax. The Fifth
Amendment to the Constitution provides in part: "No person shall
* * * for the same offence * * * be twice put in jeopardy of life
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