- 10 -
Rule 142(b); Petzoldt v. Commissioner, 92 T.C. 661, 699 (1989);
Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983).
In the instant case, petitioner does not contest the
existence of underpayments for taxable years 1989, 1990, and
1991. Thus, the sole issue for us to decide is whether
respondent has proved by clear and convincing evidence that some
portion of each underpayment is due to fraud. Fraud is defined
as an intentional wrongdoing designed to evade tax believed to be
owing. Petzoldt v. Commissioner, supra at 698. The existence of
fraud is a question of fact to be resolved upon consideration of
the entire record. Gajewski v. Commissioner, 67 T.C. 181, 199
(1976), affd. without published opinion 578 F.2d 1383 (8th Cir.
1978). Respondent's burden is met if it is shown that petitioner
intended to evade taxes known to be owing by conduct intended to
conceal, mislead, or otherwise prevent the collection of such
taxes. Petzoldt v. Commissioner, supra at 699. Fraud will never
be presumed. Beaver v. Commissioner, 55 T.C. 85, 92 (1970).
Direct evidence of the requisite fraudulent intent is seldom
available; thus, fraud may be proved by circumstantial evidence
and reasonable inferences drawn from the facts. Spies v. United
States, 317 U.S. 492, 499 (1943); King's Court Mobile Home Park
v. Commissioner, 98 T.C. 511, 516 (1992). The taxpayer's entire
course of conduct may establish the requisite intent. Otsuki v.
Commissioner, 53 T.C. 96, 106 (1969).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011