Harold Pottorf - Page 3




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          respondent bears the burden of proving fraud within the meaning             
          of section 6653(b)(1)2 for the 1983, 1984, 1985, 1986, and 1987             
          taxable years, we consider here whether respondent has satisfied            
          that burden.                                                                
               Respondent seeks to carry his burden, alternatively, by                
          means of the deemed admissions in the Court’s records and by the            
          allegations pleaded in respondent’s answer, which are treated as            
          established, due to petitioner’s failure to appear and prosecute            
          his case.  See, e.g., Coninck v. Commissioner, 100 T.C. 495, 497            
          n.3 (1993).  In this regard, respondent points out that                     
          petitioner’s reply did not contain a denial of all of                       
          respondent’s affirmative allegations, so that any such allegation           
          not expressly admitted or denied is deemed admitted.  See Rule              
          37(c).                                                                      
               The matters deemed admitted by reason of petitioner’s                  
          default, or through the undenied allegations in respondent’s                
          answer and through deemed admissions under Rule 90, are as                  
          follows:                                                                    
               For the years 1983, 1984, 1985, 1986, and 1987, petitioner             
          engaged in the business of farming and received income that he              
          did not report in the amounts of $183,570, $187,755, $154,755,              


               2 Section references are to the Internal Revenue Code as               
          amended and in effect for the period under consideration, and               
          rule references are to this Court’s Rules of Practice and                   
          Procedure.                                                                  




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