Harold Pottorf - Page 5




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          records of his income-producing activities for the taxable years            
          1983 through 1987.  Petitioner also diverted his income from                
          farming to purported foreign trusts attempting to conceal his               
          assets.  See Kotmair v. Commissioner, 86 T.C. 1253, 1260 (1986).            
          On November 2, 1995, petitioner filed delinquent returns of                 
          income for 1988 through 1994 and reflected income tax liabilities           
          due, and said liabilities remain unpaid.  Petitioner’s pattern of           
          conduct over 16 years was fraudulent with the intent to evade               
          tax.                                                                        
               Petitioner has failed to communicate with the Court and                
          respondent, and he has otherwise failed to “plead” or “proceed”             
          within the meaning of Rule 123.  Petitioner, having failed to               
          prepare for or appear at trial, did not comply with Rule 91 or              
          this Court’s standing pretrial order.  “Entry of a default                  
          decision for the fraud addition in the instant case therefore is            
          appropriate upon a determination in our ‘sound judicial                     
          discretion’ that the pleadings set forth sufficient facts to                
          support such a judgment.”  Smith v. Commissioner, 91 T.C. 1049,             
          1058-1059 (1988) (quoting Bosurgi v. Commissioner, 87 T.C. 1403,            
          1408 (1986)), affd. 926 F.2d 1478 (6th Cir. 1991).                          
               Based on the deemed admitted facts and respondent’s                    
          pleading, we find petitioner intended to conceal, mislead, or               
          otherwise prevent the collection of his taxes.  See Rowlee v.               
          Commissioner, 80 T.C. 1111, 1123 (1983).  Fraudulent intent may             





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