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clearly and convincingly support such a decision. Id. at 1058-
1059.
The facts alleged in the answer, deemed admitted, together
with the facts alleged in the request for admissions, deemed
admitted, constitute clear and convincing evidence that
petitioner fraudulently underpaid his taxes for the years in
issue. Prominent among the matters contained in the answer are
petitioner's admissions that: (1) Petitioner understated taxable
income in the amounts of $365,464 for 1991, $268,031 for 1992,
and $157,476 for 1993; (2) the deficiency for each of the years
in issue is due to fraud with intent to evade taxes; (3)
petitioner did not file a return for 1991; and (4) his failure to
file a return for 1991 was fraudulent with the intent to evade
taxes.
The pleaded facts clearly and convincingly establish that
petitioner fraudulently failed to file a return for 1991 and
fraudulently underpaid his income taxes for the years in issue.
Thus, we are satisfied that the addition to tax for fraudulent
failure to file and the fraud penalty for the years in issue
should be sustained by the entry of a default judgment against
petitioner pursuant to Rule 123(a).
Finally, we consider whether petitioner has engaged in
behavior that warrants imposition of a penalty pursuant to
section 6673. Section 6673(a)(1) authorizes the Tax Court to
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