Stephen Martin Beddow - Page 7

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          not mean that petitioner underpaid his taxes for purposes of the            
          additions to tax for fraud.  See Parks v. Commissioner, 94 T.C.             
          654, 660-661 (1990); Fields v. Commissioner, T.C. Memo. 1996-425.           
               Following our careful review of the record, we conclude that           
          respondent has clearly and convincingly proven that petitioner              
          underpaid his taxes for each year in issue.  See sec. 6653(c)(1)            
          (an “underpayment” generally is the same as a “deficiency” under            
          sec. 6211). The record clearly convinces us that petitioner had             
          gross income in 1986 and 1987, and that he should have filed                
          returns and reported that income.  The first prong is satisfied.            
               As to the second prong, fraud is defined as an intentional             
          wrongdoing designed to evade tax believed to be owing.  See                 
          Miller v. Commissioner, 94 T.C. 316, 332 (1990).  The existence             
          of fraud is a question of fact.  See Gajewski v. Commissioner, 67           
          T.C. 181, 199 (1976), affd. without published opinion 578 F.2d              
          1383 (8th Cir. 1978).  Fraud is never presumed or imputed; it               
          must be established by independent evidence that establishes a              
          fraudulent intent on the taxpayer’s part.  See Otsuki v.                    
          Commissioner, 53 T.C. 96, 106 (1969).  For respondent to prevail,           
          he must show that petitioner intended to conceal, mislead, or               
          otherwise prevent the collection of taxes.  See Korecky v.                  
          Commissioner, 781 F.2d 1566, 1568 (11th Cir. 1986), affg. per               
          curiam T.C. Memo. 1985-63; Stoltzfus v. United States, supra at             
          1004; Webb v. Commissioner, 394 F.2d 366, 377 (5th Cir. 1968),              

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