- 26 -
1972), affg. T.C. Memo. 1970-274; Tomlinson v. Lefkowitz, 334
F.2d 262, 265 (5th Cir. 1964).
Absent such estoppel, the existence of fraud is a question
of fact to be decided on consideration 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). Because direct
proof is seldom available, fraud may be proven by circumstantial
evidence. See Stephenson v. Commissioner, 79 T.C. 995, 1005-1006
(1982), affd. 748 F.2d 331 (6th Cir. 1984); Otsuki v.
Commissioner, 53 T.C. 96, 105-106 (1969). Moreover, the
taxpayer's entire course of conduct may establish fraud, see
Spies v. United States, 317 U.S. 492 (1943), and in determining
fraud, we take into account the taxpayer's experience and
education; see Solomon v. Commissioner, 732 F.2d 1459, 1461-1462
(6th Cir. 1984), affg. per curiam T.C. Memo. 1982-603.
Keeping a second set of false records creates an especially
strong inference of an intent to defeat or evade taxes. See
Spies v. United States, supra at 499; Lee v. Commissioner, T.C.
Memo. 1995-597; Raeder v. Commissioner, T.C. Memo. 1965-230; 57
Herkimer St. Corp. v. Commissioner, T.C. Memo. 1961-223, affd.
per curiam 316 F.2d 726 (5th Cir. 1963). Other indicia or
"badges" of fraud include: (1) Understating income; (2) failure
to report income over an extended period of time; (3) giving
implausible or inconsistent explanations of behavior; (4)
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