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taxes. See Stoltzfus v. United States, 398 F.2d 1002, 1004 (3d
Cir. 1968); Parks v. Commissioner, 94 T.C. 654, 661 (1990); see
also Laurins v. Commissioner, 889 F.2d 910, 913 (9th Cir. 1989),
affg. Norman v. Commissioner, T.C. Memo. 1987-265. The existence
of fraud is a question of fact to be resolved upon consideration
of the entire record. See DiLeo v. Commissioner, 96 T.C. 858,
874 (1991), affd. 959 F.2d 16 (2d Cir. 1992); Recklitis v.
Commissioner, 91 T.C. 874, 909 (1988); 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 and
should not be found in circumstances which create at most only
suspicion. See Toussaint v. Commissioner, 743 F.2d 309, 312 (5th
Cir. 1984), affg. T.C. Memo. 1984-25; Petzoldt v. Commissioner,
92 T.C. 661, 700 (1989); Katz v. Commissioner, 90 T.C. 1130, 1144
(1988). Direct evidence of the requisite fraudulent intent is
seldom available. See Petzoldt v. Commissioner, supra at 699;
Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983). Consequently,
respondent may prove fraud by circumstantial evidence. See
Toussaint v. Commissioner, supra at 312; Marsellus v. Commis-
sioner, 544 F.2d 883, 885 (5th Cir. 1977), affg. T.C. Memo. 1975-
368; Rowlee v. Commissioner, supra at 1123.
The courts have identified a number of badges of fraud from
which fraudulent intent may be inferred. Those badges include
(1) understatement of income; (2) acts designed to conceal
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