- 17 -
of such taxes. Rowlee v. Commissioner, 80 T.C. 1111, 1123
(1983); see also Stoltzfus v. United States, 398 F.2d 1002, 1004
(3d Cir. 1968); Webb v. Commissioner, 394 F.2d 366, 377-378 (5th
Cir. 1968), affg. T.C. Memo. 1966-81.
When fraud is alleged for multiple tax years, the
Commissioner must meet her burden of proof for each tax year.
Castillo v. Commissioner, 84 T.C. 405, 409 (1985). The existence
of fraud is a question of fact to be decided on 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). Fraud is never presumed. Beaver v. Commissioner, 55 T.C.
85, 92 (1970). Because direct proof is seldom available, fraud
may be proven by circumstantial evidence. Stephenson v.
Commissioner, 79 T.C. 995, 1005-1006 (1982), affd. 748 F.2d 331
(6th Cir. 1984); Otsuki v. Commissioner, 53 T.C. 96, 105-106
(1969).
The taxpayer's entire course of conduct may establish fraud.
Spies v. United States, 317 U.S. 492 (1943); Castillo v.
Commissioner, supra. This includes conduct frequently considered
"badges" or indicia of fraud such as: (1) Failure to file
returns; (2) failure to report income over an extended period of
time; (3) the taxpayer's experience and knowledge, Solomon v.
Commissioner, 732 F.2d 1459, 1461-1462 (6th Cir. 1984), affg.
T.C. Memo. 1982-603; (4) filing false Forms W-4; and (5) failure
to make estimated tax payments. Bradford v. Commissioner, 796
F.2d 303, 307-308 (9th Cir. 1986), affg. T.C. Memo. 1984-601;
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