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See Collins v. Commissioner, T.C. Memo. 1997-291.
Rule 123 provides that the failure of a party to appear at
trial or other hearing may result in an entry of decision against
such party.1 We find the facts deemed admitted sufficient to
satisfy respondent's burden of proving fraud. The foregoing
circumstances and above-pleaded admitted facts clearly establish
that petitioner fraudulently underpaid its Federal income taxes
for the years at issue. See Smith v. Commissioner, 91 T.C. 1049,
1058-1059 (1988), affd. 926 F.2d 1470 (6th Cir. 1991); Doncaster
v. Commissioner, supra at 337. Accordingly, we are satisfied
that the additions to tax for fraud should be sustained by entry
of an order pursuant to Rule 123.
To reflect the foregoing,
An appropriate order and decision
will be entered.
1Rule 123 provides in part:
(a) Default: If any party has failed to plead or
otherwise proceed as provided by these Rules or as
required by the Court, then such party may be held in
default by the Court either on motion of another party
or on the initiative of the Court. Thereafter, the
Court may enter a decision against the defaulting
party, upon such terms and conditions as the Court may
deem proper, or may impose such sanctions * * * as the
Court may deem appropriate. * * *
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