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Circuit, to which this case is appealable, sustained a default
judgment, including additions to tax for fraud, against a
taxpayer who failed to appear for trial.
In this case, as appears from the procedural history set
forth below in relation to respondent's motion for a penalty
under section 6673, there is every reason to believe that
petitioner's default was willful and was a continuation of his
history of willful and flagrant disregard of his tax liabilities.
At no time during this proceeding has he offered evidence of any
reasonable dispute with respect to the facts alleged and relied
on by respondent.
Respondent's specific allegations, generally supported by
the evidence deemed stipulated, set forth sufficient facts for
respondent to carry his burden of proof. Failure to file
returns, failure to report income over a period of years, failure
to pay tax over a period of years, and concealment of assets are
common badges of fraud. See, e.g., Bradford v. Commissioner, 796
F.2d 303, 307-308 (9th Cir. 1986), affg. T.C. Memo. 1984-601.
Under these circumstances, respondent's burden of proof is
satisfied. See Smith v. Commissioner, supra. Respondent's
motion for default judgment should be granted, and the
deficiencies and additions to tax determined by respondent should
be sustained in full.
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