-42-
attributable to fraud. E.g., Lee v. United States, 466 F.2d 11,
16-17 (5th Cir. 1972); Plunkett v. Commissioner, 465 F.2d 299,
303 (7th Cir. 1972), affg. T.C. Memo. 1970-274. In carrying this
burden, respondent may not rely on Robert's failure to meet his
burden of proving error in respondent's determinations as to the
deficiencies. E.g., Petzoldt v. Commissioner, 92 T.C. 661, 700
(1989); Habersham-Bey v. Commissioner, 78 T.C. 304, 312 (1982),
and cases cited therein.
Where fraud is determined for each of several years,
respondent's burden applies separately for each of the years.
Estate of Stein v. Commissioner, 25 T.C. 940, 959-963 (1956),
affd. sub nom. Levine v. Commissioner, 250 F.2d 798 (2d Cir.
1958); McLaughlin v. Commissioner, 29 B.T.A. 247, 249 (1933). A
mere understatement of income does not establish fraud. However,
a pattern of consistent underreporting of income for several
years is strong evidence of fraud. Estate of Mazzoni v.
Commissioner, 451 F.2d 197, 202 (3d Cir. 1971), affg. T.C. Memos.
1970-144 and 1970-37; Adler v. Commissioner, 422 F.2d 63, 66 (6th
Cir. 1970), affg. T.C. Memo. 1968-100; Otsuki v. Commissioner, 53
T.C. at 108.
The issue of fraud is a factual question that is to be
decided on an examination of all the evidence in the record.
Plunkett v. Commissioner, 465 F.2d at 303; Mensik v.
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