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underpayment attributable to fraud. For 1986, 1987, and 1988, if
respondent establishes that any portion of the underpayment is
attributable to fraud, the entire underpayment is treated as
attributable to fraud and subjected to an addition to tax except
with respect to any portion of the underpayment that the taxpayer
establishes is not attributable to fraud. Sec. 6653(b)(2).
A. Underpayment of Tax
The filing of an amended return reporting additional income
is an admission of an underpayment of tax. See Badaracco v.
Commissioner, 464 U.S. 386, 399 (1984). Petitioner's 1987
amended return is an admission that he underreported, in his
original returns, $56,000 of income in 1987. Additionally, on
brief, petitioner concedes that he underreported his income from
his Schedules C medical practice by $17,170.91 in 1985 and
$44,401.56 in 1986. Furthermore, respondent has established by
clear and convincing evidence an underpayment of tax by
petitioner for each of the years in issue.
B. Fraudulent Intent
The Commissioner must prove that a portion of such
underpayment for each taxable year was due to fraud.
Professional Servs. v. Commissioner, 79 T.C. 888, 930 (1982).
The existence of fraud is a question of fact to be resolved from
the entire record. Gajewski v. Commissioner, 67 T.C. 181, 199
(1976), affd. without published opinion 578 F.2d 1383 (8th Cir.
1978). Because direct proof of a taxpayer's intent is rarely
available, fraud may be proven by circumstantial evidence, and
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