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Commissioner, 79 T.C. 995, 1006 (1982), affd. 748 F.2d 331 (6th
Cir. 1984). The fraudulent intent of an executor is treated as
that of the estate. See Estate of Pittard v. Commissioner,
69 T.C. 391 (1977); see also Estate of Fox v. Commissioner,
T.C. Memo. 1995-30, affd. without published opinion 100 F.3d 945
(2d Cir. 1996); Estate of Edens v. Commissioner, T.C. Memo. 1981-
557, affd. without published opinion 696 F.2d 989 (4th Cir.
1982).
Courts have relied on certain indicia of fraud in deciding
whether a taxpayer had the requisite fraudulent intent. Indicia
of fraud include: (1) Understating income, (2) maintaining
inadequate records, (3) failing to file tax returns, (4) giving
implausible or inconsistent explanations of behavior,
(5) concealing assets, (6) failing to cooperate with tax
authorities, (7) engaging in illegal activities, (8) attempting
to conceal illegal activities, and (9) dealing in cash.
Recklitis v. Commissioner, 91 T.C. 874, 910 (1988); see also
Bradford v. Commissioner, 796 F.2d 303, 307-308 (9th Cir. 1986),
affg. T.C. Memo. 1984-601; Lee v. Commissioner, T.C. Memo. 1995-
597. These "badges of fraud" are nonexclusive. Niedringhaus v.
Commissioner, 99 T.C. 202, 211 (1992). The taxpayer's education
and business background are also relevant to the determination of
fraud. Id. Bearing these general principles in mind, we turn to
the indicia of fraud that are relevant to the instant case.
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