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otherwise prevent the collection of taxes. See Parks v.
Commissioner, 94 T.C. 654, 660-661 (1990). The Commissioner must
meet this burden through affirmative evidence because fraud is
never imputed or presumed. Beaver v. Commissioner, 55 T.C. 85,
92 (1970).
A. Underpayment of Tax
Petitioners admitted in their amended returns that they had
underreported, in their original returns, cash payments from
Brockland Pontiac for each year in issue. The filing of those
amended returns is an admission of an underpayment of tax for
each of those years. See Badaracco v. Commissioner, 464 U.S.
386, 399 (1984).
B. Fraudulent Intent
The Commissioner must prove that a portion of such
underpayment for each taxable year was due to fraud.
Professional Servs. v. Commissioner, 79 T.C. 888, 930 (1982).
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). Because direct proof of a taxpayer's intent is rarely
available, fraud may be proven by circumstantial evidence and
reasonable inferences may be drawn from the relevant facts.
Spies v. United States, 317 U.S. 492, 499 (1943); Stephenson v.
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