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will be sufficient to prove fraud. See Habersham-Bey v.
Commissioner, 78 T.C. 304 (1982). Here, the evidence shows that
petitioner engaged in affirmative acts to misrepresent, secrete,
and attempt to deceive in order to evade taxes known by him to be
due and owing to the Government. He intentionally filed false
Forms W-4 to prevent the collection of taxes. He dealt primarily in
cash to avoid financial scrutiny. And he tried to remove his
assets from the reach of the IRS by executing a declaration of
trust with his wife purporting to convey their personal residence
to themselves as trustees for the benefit of their children.
Respondent has proven by clear and convincing evidence that
petitioner's failure to file returns for each of the years under
consideration was fraudulent. Accordingly, we hold that petitioner
is liable for the section 6651(f) additions to tax for 1990, 1991,
and 1992.
Issue 3. Section 6673(a)(1) Penalty
In relevant part, section 6673(a)(1) provides:
SEC. 6673(a). Tax Court Proceedings.--
(1) Procedures Instituted Primarily For Delay,
Etc.--Whenever it appears to the Tax Court that--
(A) proceedings before it have been
instituted or maintained by the taxpayer
primarily for delay,
(B) the taxpayer's position in such
proceeding is frivolous or groundless, or
* * * * * * *
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