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To establish fraud, respondent had to prove by clear and
convincing evidence that Phillip intended to evade the payment of
taxes. See sec. 7454(a); Rule 142(a); Traficant v. Commissioner,
884 F.2d 258, 264 (6th Cir. 1989), affg. 89 T.C. 501 (1987). The
existence of fraud is a factual question to be resolved upon
consideration of the entire record. See Rowlee v. Commissioner,
80 T.C. 1111, 1123 (1983); Stone v. Commissioner, 56 T.C. 213,
224 (1971). A taxpayer’s entire course of conduct may establish
the requisite fraudulent intent. See Rowlee v. Commissioner,
supra; Stone v. Commissioner, supra. Because fraud can rarely be
established by direct proof of a taxpayer’s intent, fraud may be
proven by circumstantial evidence. See Rowlee v. Commissioner,
supra.
Fraud may be inferred from any conduct, the likely effect of
which would be to mislead or conceal. See Spies v. United
States, 317 U.S. 492, 499 (1943). The courts have relied on
numerous indicia of fraud in deciding cases under section 6663
and its predecessor section 6653(b) including: (1) Failure to
report income over an extended period of time; (2) failure to
file a tax return; (3) failure to furnish the Government with
access to records; (4) failure to keep adequate books and
records; (5) engaging in illegal activity; (6) concealment of
bank accounts from an Internal Revenue agent; (7) giving
implausible explanations of conduct; (8) willingness to defraud
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