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Helvering v. Mitchell, 303 U.S. 391, 401 (1938). Respondent has
the burden of proving, by clear and convincing evidence, an
underpayment for 1989 and that some part of an underpayment for
that year was due to fraud. Sec. 7454(a); Rule 142(b). If
respondent establishes that any portion of the underpayment is
attributable to fraud, the entire underpayment is treated as
attributable to fraud and subjected to a 75-percent penalty
unless the taxpayer establishes that some part of the
underpayment is not attributable to fraud. Sec. 6663(b).
Respondent's burden is met if it is shown that the taxpayer
intended to conceal, mislead, or otherwise prevent the collection
of taxes. Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983).
The existence of fraud is a question of fact to be resolved
upon consideration of the entire record. King's Court Mobile
Home Park, Inc. v. Commissioner, 98 T.C. 511, 516 (1992). Fraud
will never be presumed. Beaver v. Commissioner, 55 T.C. 85, 92
(1970). Fraud may, however, be proved by circumstantial evidence
and inferences drawn from the facts because direct proof of a
taxpayer's intent is rarely available. Niedringhaus v.
Commissioner, 99 T.C. 202, 211 (1992). The taxpayer's entire
course of conduct may establish the requisite fraudulent intent.
Stone v. Commissioner, 56 T.C. 213, 223-224 (1971).
Petitioner argues that there is no underpayment of tax in
this case and that, without an underpayment, respondent cannot
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