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of fact to be determined from the entire record. See Recklitis
v. Commissioner, supra at 909; Meier v. Commissioner, 91 T.C.
273, 297 (1988). Respondent must show that petitioner intended
to evade taxes known to be owing by conduct intended to conceal,
mislead, or otherwise prevent the collection of taxes. Stoltzfus
v. United States, 398 F.2d 1002, 1004 (3d Cir. 1968); Parks v.
Commissioner, 94 T.C. 654, 660-661 (1990). Fraud will never be
presumed, Beaver v. Commissioner, 55 T.C. 85, 92 (1970), but may,
however, be proved by circumstantial evidence because direct
proof of the taxpayer’s intent is rarely available. Recklitis v.
Commissioner, supra at 910; Meier v. Commissioner, supra. The
taxpayer’s entire course of conduct may be examined to establish
the requisite fraudulent
intent. Recklitis v. Commissioner, supra; Meier v. Commissioner,
supra.
Having considered all of the evidence before us, we conclude
that respondent clearly and convincingly has shown fraud with
respect to at least the underpayments in tax attributable to
Monterey for both 1987 and 1988. We do so based on the following
factors, which, together, convince us that Joseph had fraudulent
intent with respect to his underreporting of income from
Monterey.
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