Kenneth A. Weiner - Page 12

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          United States, 317 U.S. 492, 499 (1943); Stoltzfus v. United                
          States, 398 F.2d 1002, 1005 (3d Cir. 1968); Webb v. Commissioner,           
          394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo. 1966-81;                
          Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983).                          
               Because matters deemed admitted pursuant to Rule 90 are                
          conclusively established and may be sufficient to support the               
          granting of a motion for summary judgment, respondent may                   
          establish fraud by relying on petitioner's deemed admissions.               
          Marshall v. Commissioner, supra at 272-273; Morrison v.                     
          Commissioner, 81 T.C. 644, 651 (1983); Doncaster v. Commissioner,           
          77 T.C. 334, 336 (1981).  Petitioner is deemed to have admitted             
          under Rule 90(c) that:                                                      
                    16.  [he] omitted all of his income in the amounts                
               of $1,100,411.00 received in 1984 and $1,905,387.00                    
               received in 1985 from the investment scheme, from his                  
               1984 and 1985 income tax returns, respectively, and                    
               filed these returns with the fraudulent intent to evade                
               the tax due on that income.                                            
               *    *       *      *         *       *      *                         
                    [18].  [t]he deficiencies in income tax for the                   
               taxable years 1984 and 1985 are due, in whole or in                    
               part, to the petitioner's fraudulent intent to evade                   
               income tax.                                                            
                    [19].  [a] part of the underpayment of the tax                    
               required to be shown on the petitioner's income tax                    
               returns for each of the years 1984 and 1985 is due to                  
               fraud.                                                                 
               Courts have relied on a number of indicia of fraud in                  
          deciding section 6653(b) cases.  Indicia of fraud include:                  
          (1) A pattern of understatement of income, (2) maintaining                  




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