- 8 -
T.C. 661, 698 (1989). Whether fraud exists is a question of fact
to be resolved upon review of the entire record. See Gajewski v.
Commissioner, 67 T.C. 181, 199 (1976), affd. without published
opinion 578 F.2d 1383 (8th Cir. 1978). "Fraud is never
presumed." Beaver v. Commissioner, 55 T.C. 85, 92 (1970).
"Facts deemed admitted pursuant to Rule 37(c) are considered
conclusively established and may be relied upon by the government
even in relation to issues where the government bears the burden
of proof." Baptiste v. Commissioner, 29 F.3d 1533, 1537 (11th
Cir. 1994), affg. T.C. Memo. 1992-198; see also Doncaster v.
Commissioner, supra at 336-338 (holding that deemed admissions
under Rule 37(c) are sufficient to satisfy the Government's
burden of proof with respect to the issue of fraud).
Based on the facts asserted in respondent's answer, which
facts are deemed admitted, there is no genuine issue of material
fact with respect to respondent's determinations. Petitioner is
deemed to have fraudulently understated by $187,745 his Schedule
C gross receipts for the year in issue. Petitioner knowingly
prepared a false 1993 tax return with the intent to evade tax
when he: (1) Overstated his exemptions, (2) overstated his
standard deduction for married persons, (3) underreported his
self-employment taxes, and (4) understated his income tax
liability. Petitioner's fraudulent actions, as set forth above,
are part of a 2-year pattern of fraud in which petitioner engaged
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