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allegations are inconsistent, implausible, and not supported by
objective evidence.
B. Indicia of Fraud
There are certain indicia that can lead to a decision as to
fraud. They include: (1) Understatements of income, Holland v.
United States, supra at 137; Patton v. Commissioner, 799 F.2d
166, 171 (5th Cir. 1986), affg. T.C. Memo. 1985-148; (2)
inadequate books and records, Merritt v. Commissioner, supra at
487; Edwards v. Commissioner, T.C. Memo. 1995-77; (3) false
entries on or alterations of documents, Spies v. United States,
supra at 499; (4) failure to file tax returns; (5) implausible or
inconsistent explanations of behavior; Grosshandler v.
Commissioner, 75 T.C. 1, 20 (1980); (6) concealment of income or
assets, Bradford v. Commissioner, 796 F.2d 303, 307-308 (9th Cir.
1986), affg. T.C. Memo. 1984-601; (7) dealing in cash; (8)
failure to cooperate with tax authorities, Bradford v.
Commissioner, supra at 307; (9) filing false documents,
Stephenson v. Commissioner, supra at 1007; Recklitis v.
Commissioner, 91 T.C. 874, 910 (1988); and (10) failing to give
complete information to the tax return preparer, Korecky v.
Commissioner, 781 F.2d 1566, 1569 (11th Cir. 1986), affg. per
curiam T.C. Memo. 1985-63. This list is nonexclusive. See
Miller v. Commissioner, supra at 334. Although no single factor
may be necessarily sufficient to establish fraud, the existence
of several indicia may be persuasive circumstantial evidence of
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