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States, 398 F.2d 1002, 1004 (3d Cir. 1968); Webb v. Commissioner,
394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo. 1966-81;
Powell v. Granquist, 252 F.2d 56, 60 (9th Cir. 1958). Stated
differently, imposition of the civil fraud penalty is appropriate
upon a showing that the taxpayer intended to evade taxes believed
to be owing by conduct designed to conceal, mislead, or otherwise
prevent the collection of taxes. DiLeo v. Commissioner, supra at
874; Brooks v. Commissioner, 82 T.C. at 431.
The existence of fraud is a question of fact to be resolved
upon consideration of the entire record. Brooks v. Commissioner,
supra at 431; Gajewski v. Commissioner, 67 T.C. 181, 199 (1976),
affd. without published opinion 578 F.2d 1383 (8th Cir. 1978).
Fraud will never be presumed. Brooks v. Commissioner, supra at
431; Beaver v. Commissioner, 55 T.C. 85, 92 (1970). However,
because direct proof of a taxpayer’s intent is seldom available,
fraud may be established by circumstantial evidence. Spies v.
United States, 317 U.S. 492, 499 (1943); Brooks v. Commissioner,
supra at 431. In this connection, courts have developed a
nonexclusive list of circumstantial indicia, or “badges”, of
fraud that will support a finding of fraudulent intent.
In Bradford v. Commissioner, 796 F.2d 303, 307 (9th Cir.
1986), affg. T.C. Memo. 1984-601, the Court of Appeals for the
Ninth Circuit, to which appeal of this case would normally lie,
enumerated the following badges of fraud distilled from then-
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