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evade a tax believed to be owing, Miller v. Commissioner, 94 T.C.
316, 332 (1990); Petzoldt v. Commissioner, 92 T.C. 661, 698
(1989), and is shown by proof that the taxpayer intended to
conceal, mislead, or otherwise prevent the collection of his or
her tax, Spies v. United States, 317 U.S. 492, 499 (1943);
Douge v. Commissioner, 899 F.2d 164, 168 (2d Cir. 1990);
Stoltzfus v. United States, 398 F.2d 1002, 1004 (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).
Direct proof of a taxpayer's intent is rarely available;
thus, fraud may be proven by circumstantial evidence, and
reasonable inferences may be drawn from the relevant facts.
Spies v. United States, supra at 499; Stephenson v. Commissioner,
79 T.C. 995, 1006 (1982), affd. 748 F.2d 331 (6th Cir. 1984).
The following indicia of fraud are examples of circumstantial
evidence of fraudulent intent: (1) Understating income;
(2) maintaining inadequate records; (3) failing to file tax
returns; (4) giving implausible or inconsistent explanations of
behavior; (5) concealing assets; (6) failing to cooperate with
tax authorities; (7) engaging in illegal activities;
(8) attempting to conceal illegal activities; (9) dealing in
cash; and (10) failing to make estimated tax payments.
Recklitis v. Commissioner, 91 T.C. 874, 910 (1988). These
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