- 34 -
(2) the $2,600 of unreported income for each of those years to
which the parties agreed at trial.8
We turn now to the requirement of fraudulent intent under
section 6663. To prove fraudulent intent on the part of pe-
titioners for the years at issue, respondent must establish by
clear and convincing evidence that they intended to evade tax for
each such year, which they believed to be owing, by conduct
intended to conceal, mislead, or otherwise prevent the collection
of such tax. See Laurins v. Commissioner, 889 F.2d 910, 913 (9th
Cir. 1989), affg. Norman v. Commissioner, T.C. Memo. 1987-265;
Stoltzfus v. United States, 398 F.2d 1002, 1004 (3d Cir. 1968);
Parks v. Commissioner, supra at 661. 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).
8 See supra note 2.
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