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of the evidence that it is not attributable to fraud. See
sec. 6663(b).
In a case like the present cases in which allegations
of fraud are intertwined with unreported and indirectly
reconstructed income, the Commissioner may prove the first
prong of the fraud test, that an underpayment exists, in
one of two ways: (1) By proving a likely source of the
unreported income; or (2) where the taxpayer alleges a
nontaxable source, by disproving the nontaxable source so
alleged. See Parks v. Commissioner, 94 T.C. 654, 661
(1990).
To prove the second prong of the fraud test,
fraudulent intent, the Commissioner must show that the
taxpayer intended to evade tax believed to be owing by
conduct intended to conceal, mislead, or otherwise prevent
the collection of such tax. See Recklitis v. Commissioner,
91 T.C. 874, 909 (1988); Rowlee v. Commissioner, 80 T.C.
1111, 1123 (1983). The existence of fraud is a question
of fact to be resolved upon consideration of the entire
record. See DiLeo v. Commissioner, supra at 874; Gajewski
v. Commissioner, 67 T.C. 181, 199 (1976), affd. without
published opinion 578 F.2d 1383 (8th Cir. 1978). Fraud
will never be imputed or presumed but must be affirmatively
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