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otherwise prevent the collection of such tax. See
Recklitis v. Commissioner, 91 T.C. 874, 909 (1988); Rowlee
v. Commissioner, 80 T.C. 1111, 1123 (1983). The existence
of fraud is a question of fact to be resolved upon
consideration of the entire record. See DiLeo v.
Commissioner, supra at 874; Gajewski v. Commissioner, 67
T.C. 181, 199 (1976), affd. without published opinion 578
F.2d 1383 (8th Cir. 1978). Fraud will never be imputed or
presumed but must be affirmatively established by clear and
convincing evidence. See Beaver v. Commissioner, 55 T.C.
85, 92 (1970).
Because direct proof of a taxpayer’s fraudulent intent
is rarely available, fraud may be shown by circumstantial
evidence. See Stephenson v. Commissioner, 79 T.C. 995,
1005-1006 (1982), affd. per curiam 748 F.2d 331 (6th Cir.
1984). A taxpayer’s entire course of conduct may establish
the requisite fraudulent intent. See Stone v. Commis-
sioner, 56 T.C. 213, 224 (1971); Otsuki v. Commissioner,
supra at 105-106.
Over the years, courts have developed a nonexclusive
list of factors that demonstrate fraudulent intent. These
badges of fraud include: (1) Understating income, see
Holland v. United States, 348 U.S. 121, 137 (1954); Parks
v. Commissioner, 94 T.C. 654, 664 (1990); (2) inadequate
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