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of fraud. Holland v. United States, 348 U.S. 121, 139 (1954).
Petitioner did not report any of his income for the years in
issue until September 24, 1993. Thus, petitioner consistently
and substantially understated his income during the years in
issue by claiming exempt status.
3. Filing False Forms W-4
Filing false Forms W-4 may be evidence of fraud and an
affirmative act of evasion. United States v. Mal, 942 F.2d 682,
685 (9th Cir. 1991); Bradford v. Commissioner, supra at 308;
Recklitis v. Commissioner, supra at 910-911; Rowlee v.
Commissioner, 80 T.C. 1111, 1125 (1983); Stephenson v.
Commissioner, supra at 1007. Petitioner filed false Forms W-4
with his employer.
4. Petitioner’s Failure To File
Although failure to file tax returns, even over an extended
period, may not per se establish fraud, it may be persuasive
circumstantial evidence of fraud. Marsellus v. Commissioner, 544
F.2d 883, 885 (5th Cir. 1977), affg. T.C. Memo. 1975-368;
Stafford v. Commissioner, T.C. Memo. 1997-50, affd. without
published opinion 146 F.3d 868 (5th Cir. 1998); Recklitis v.
Commissioner, supra at 910-911; Schiff v. Commissioner, T.C.
Memo. 1984-223, affd. 751 F.2d 116 (2d Cir. 1984). The failure
to file returns is particularly persuasive evidence when the
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