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persuasive evidence. Solomon v. Commissioner, 732 F.2d 1459,
1461 (6th Cir. 1984), affg. per curiam T.C. Memo. 1982-603. Some
conduct and evidence can be classified under more than one
factor. A taxpayer's intelligence, education, and tax expertise
are also relevant in determining fraudulent intent. See
Stephenson v. Commissioner, 79 T.C. 995, 1006 (1982), affd. 748
F.2d 331 (6th Cir. 1984); Iley v. Commissioner, 19 T.C. 631, 635
(1952).
Applying the aforementioned criteria, as set out below, we
conclude that petitioners underreported their income for 1990
with the intention to evade income tax on $990,000 and are
therefore liable for a penalty under section 6663.
1. Understatement of Income
Petitioners assert that they are not liable for the civil
fraud penalty because there is no "pattern of underreporting"
income. Respondent acknowledges that the evidence does not
demonstrate such a pattern. Nevertheless, she contends that a
pattern of underreporting is not a sine qua non for the
imposition of the civil fraud penalty.
We agree with respondent that she may assert such a penalty
where a taxpayer fails to report income, even for only 1 year,
with the intention of evading tax due on that income. In
Mitchell v. Commissioner, T.C. Memo. 1994-242, the Court examined
facts relating to a corporate taxpayer and an officer. Acting
for the corporation, the officer sold its airplane and diverted
the sales proceeds to a Swiss bank account. Neither the
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