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In the instant case petitioner is deemed to have admitted,
pursuant to Rule 37(c), that he fraudulently and with the intent
to evade taxes filed an income tax return for 1992 in which he
omitted $620,500 in income and that the underpayment of tax
required to be shown on his income tax return for 1992 is due to
fraud with intent to evade income tax.
We hold that the facts deemed admitted pursuant to Rule
37(c) satisfy respondent's burden of proving fraud. Doncaster v.
Commissioner, 77 T.C. at 337. Those facts constitute clear and
convincing evidence that petitioner, fraudulently and with the
intent to evade taxes known to be owing, omitted more than 90
percent of his income earned during 1992 and that the
underpayment of tax required to be shown on his 1992 income tax
return is due to fraud. Consequently, respondent is entitled to
summary judgment that petitioner is liable for the penalty for
fraud under section 6663(a) for the taxable year 1992.
In order to reflect our conclusions herein,
An order and decision granting
respondent's motion for summary
judgment will be entered.
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