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fraud, except with respect to any portion of the underpayment
which the taxpayer establishes is not attributable to fraud.
Sec. 6663(b).
The Commissioner will meet his burden of proof if it is
shown that the taxpayer intended to evade a tax known to be due
and owing by conduct intended to conceal, mislead, or otherwise
prevent tax collection. Stoltzfus v. United States, 398 F.2d
1002, 1004 (3d Cir. 1968); Parks v. Commissioner, supra at 661;
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. DiLeo v. Commissioner, supra at 874. The
Commissioner may prove fraud by circumstantial evidence because
direct evidence of the taxpayer's intent is rarely available.
Stephenson v. Commissioner, 79 T.C. 995, 1005-1006 (1982), affd.
per curiam 748 F.2d 331 (6th Cir. 1984).
Intent to mislead or conceal may be inferred from a pattern
of conduct. Spies v. United States, 317 U.S. 492, 499 (1943). A
pattern of consistent underreporting of income for several years,
especially when accompanied by other circumstances showing intent
to conceal is strong evidence of fraud. Holland v. United
States, 348 U.S. 121 (1954); Parks v. Commissioner, supra at 664.
An implausible explanation of behavior is one of the "badges of
fraud". Bradford v. Commissioner, 796 F.2d 303, 307 (9th Cir.
1986), affg. T.C. Memo. 1984-601.
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