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The issue of fraud poses 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.
Commissioner, 328 F.2d 147, 150 (7th Cir. 1964), affg. 37 T.C.
703 (1962); Stone v. Commissioner, 56 T.C. at 224.
In order to establish fraud as to petitioner, respondent
must show that petitioner intended to evade taxes, which he knew
or believed were owed, by conduct intended to conceal, mislead,
or otherwise prevent the collection of taxes. E.g., Webb v.
Commissioner, 394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo.
1966-81; Powell v. Granquist, 252 F.2d 56, 60 (9th Cir. 1958);
Danenberg v. Commissioner, 73 T.C. 370, 393 (1979); McGee v.
Commissioner, 61 T.C. 249, 256-257 (1973), affd. 519 F.2d 1121
(5th Cir. 1975). This intent may be inferred from circumstantial
evidence, Powell v. Granquist, 252 F.2d at 61; Gajewski v.
Commissioner, 67 T.C. 181, 200 (1976), affd. without published
opinion 578 F.2d 1383 (8th Cir. 1978), including the
implausibility of petitioner’s explanations, Bradford v.
Commissioner, 796 F.2d 303, 307 (9th Cir. 1986) (and cases
therein cited), affg. T.C. Memo. 1984-601; Boyett v.
Commissioner, 204 F.2d 205, 208 (5th Cir. 1953), affg. a
Memorandum Opinion of this Court dated Mar. 14, 1951.
Respondent has proven by clear and convincing evidence that
there was an underpayment of tax for each of the years in issue.
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