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Petitioners have made no contentions or presented any evidence of
omitted deductions or credits. On the basis of the evidence
presented in the instant cases, we conclude that respondent has
established by clear and convincing evidence an underpayment of
tax for 1982 and 1983 for petitioners Wilson, Cattalo, and
Grove,30 and for 1983 for petitioner Giongo. Cf. Franklin v.
Commissioner, supra. For Giongo's 1982 taxable year, we conclude
that respondent did not present clear and convincing evidence of
an underpayment of tax. Although, in our discussion above, we
attributed income from the Hitchens search casino chips to Giongo
based on the preponderance of the evidence, we do not find the
evidence as to his receipt of the income from the chips to rise
to the level of clear and convincing. There being no other
search during 1982 for which we have attributed income to Giongo,
we do not find clear and convincing evidence of an underpayment
of tax by Giongo for that year.
To establish fraud, respondent must show that the taxpayer
intended to evade a tax believed to be owing by conduct intended
to conceal, mislead, or otherwise prevent the collection of such
tax. Cochrane v. Commissioner, supra at 28. Fraud is never
presumed. Id. Because direct proof of a taxpayer's intent is
rarely available, fraud may be established by circumstantial
30 Additionally, petitioners Wilson, Cattalo, and Grove were
convicted of at least one count of either bribery or robbery
within each of the years in issue. Such crimes are likely
sources of unreported income.
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