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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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