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T.C. Memo. 1995-125. That the withholdings were less than his
required estimated tax payments under section 6654 does not
establish fraud.
That Mark was well educated, financially sophisticated, and
conversant with his responsibilities under the Code is
incontrovertible. Sophistication and knowledge are relevant only
in concert with other, substantive indicia of fraud. Beaver v.
Commissioner, supra at 93; see also O'Connor v. Commissioner,
412 F.2d 304, 310 (2d Cir. 1969) (background of experience,
knowledge, and ability acquired as a certified public accountant
relevant in light of wealth of other evidence that demonstrated
taxpayer's bad faith with intent to defraud), affg. on this point
T.C. Memo. 1967-174. In the circumstances of this case, Mark's
background does not persuade us that his failure to file was
actuated by fraudulent intent.
Respondent also alleged that Mark failed to cooperate with
the Service in its investigation. Uncooperativeness can indicate
fraud. Korecky v. Commissioner, 781 F.2d 1566, 1568 (11th Cir.
1986), affg. T.C. Memo. 1985-63. However, respondent produced no
evidence on this score other than an unsubstantiated allegation
that Mark failed to respond to a single attempted contact in
1982, which the IRS itself failed to follow up. Mark responded
to the next IRS contact made 3 years later, in 1985.
Petitioners' eventual filing of tax returns in 1987 and
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