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respondent establishes that any portion of the underpayment is
attributable to fraud, the entire underpayment is treated as
attributable to fraud and subjected to an addition to tax or
penalty, except with respect to any portion of the underpayment
that the taxpayer establishes is not attributable to fraud. Sec.
6653(b)(2) for 1988; sec. 6663(b) for 1989 through 1991.
Fraud is intentional wrongdoing on the part of the taxpayer
with the specific purpose to evade a tax believed to be owing.
McGee v. Commissioner, 61 T.C. 249, 256 (1973), affd. 519 F.2d
1121 (5th Cir. 1975). The existence of fraud is a question of
fact to be resolved from the entire record. Gajewski v.
Commissioner, 67 T.C. 181, 199 (1976), affd. without published
opinion 578 F.2d 1383 (8th Cir. 1978). Respondent must meet his
burden through affirmative evidence because fraud is never
imputed or presumed. Beaver v. Commissioner, 55 T.C. 85, 92
(1970). A taxpayer's entire course of conduct can be indicative
of fraud. Stone v. Commissioner, 56 T.C. 213, 223-224 (1971);
Otsuki v. Commissioner, 53 T.C. 96, 105-106 (1969). Furthermore,
a taxpayer's fraudulent original return is not purged by the
filing of a subsequent amended return. Badaracco v.
Commissioner, 464 U.S. 386, 394 (1984).
A. Underpayment of Tax
Respondent did not assert fraud with respect to any part of
the underpayments which we have found for 1990. We have already
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