Phillip A. O'Bryon and Cyndie W. O'Bryon - Page 18




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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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