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v. Commissioner, 79 T.C. 995, 1006 (1982), affd. 748 F.2d 331
(6th Cir. 1984). A taxpayer's entire course of conduct can be
indicative of fraud. See Stone v. Commissioner, 56 T.C. 213,
223-224 (1971); Otsuki v. Commissioner, 53 T.C. 96, 105-106
(1969). The sophistication, education, and intelligence of the
taxpayer are relevant to determining fraudulent intent. See
Niedringhaus v. Commissioner, 99 T.C. 202, 211 (1992); Stephenson
v. Commissioner, supra at 1006; Iley v. Commissioner, 19 T.C.
631, 635 (1952).
Petitioner is a tax attorney who engaged in a fraudulent
refund scheme in order to generate money for his financially
strapped businesses. During the years in issue, payroll checks
issued to employees of petitioner's corporations contained
notations showing the amount of tax withheld from each check.
Payroll checks issued to petitioner contained no notations
regarding taxes being withheld. During the years in issue,
petitioner did not segregate any amounts he allegedly withheld as
taxes from his payroll checks. When questioned by respondent as
to what he did with the funds he allegedly withheld from his own
paychecks, petitioner replied "Spent them."
At trial, petitioner admitted that the withholding amounts
on the Forms W-2 he prepared were "fictitious" because neither he
nor his corporations deposited any of the Federal income taxes he
claims he/his corporations withheld on the wages he earned. We
conclude that petitioner knew that the amounts he listed as
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