Ella Freidus - Page 28

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          to fraud.  We stated that the record did not "show any                       
          affirmative acts of concealment or misrepresentation so as to                
          constitute fraud, such as filing false information or attempting             
          to mislead respondent."  Id.                                                 
               Unlike the taxpayer in Nelon v. Commissioner, supra,                    
          petitioner is an astute businessperson possessing adequate skill             
          in maintaining adequate books and records.  Furthermore,                     
          petitioner acknowledges that she is under an obligation to file              
          returns and pay Federal income taxes.  Petitioner's income is not            
          easy to trace, but rather difficult to establish due to her                  
          surreptitious use of secret accounts and nominee corporations.               
          Therefore, unlike Nelon v. Commissioner, supra, the record here              
          contains ample evidence of affirmative acts of concealment so as             
          to constitute fraud.                                                         
               Overall, in her extended testimony before us, petitioner                
          impressed us as being a strong-minded businesswoman fully capable            
          of managing her affairs, including the filing of accurate and                
          timely tax returns.                                                          
               Based on the foregoing, we hold that respondent has                     
          established by clear and convincing evidence that at least part              
          of petitioner's underpayment for the taxable years 1987 and 1988             
          is attributable to fraud with the intent to evade tax.  We                   
          further hold that petitioner's failure to file her 1989 and 1990             
          tax returns is attributable to fraud because petitioner's failure            

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