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otherwise prevent the collection of taxes. See Parks v.
Commissioner, 94 T.C. at 661.
The presence of fraud is a question of fact to be resolved
upon consideration of the entire record. See Recklitis v.
Commissioner, 91 T.C. 874, 909 (1988). Because direct proof of
the taxpayer's intent is rarely available, fraud may be proven by
circumstantial evidence. See Spies v. United States, 317 U.S.
492 (1943); Recklitis v. Commissioner, supra at 910.
A taxpayer convicted of criminal tax evasion is collaterally
estopped from denying liability for the civil fraud penalty.
Moore v. United States, 360 F.2d 353 (4th Cir. 1965); Zamzam v.
Commissioner, T.C. Memo. 2000-371. Therefore, petitioner, having
been convicted of criminal tax evasion for 1988, is liable as a
matter of law for the fraud addition for 1988. Respondent must
prove fraud by clear and convincing evidence for 1989 and 1990.
Courts have developed a nonexclusive list of items of
circumstantial evidence--often referred to as “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 an appeal of this case would lie--set forth the
following indicia or “badges” of fraud: (1) Understatement of
income; (2) maintenance of inadequate records; (3) failure to
file tax returns; (4) implausible or inconsistent explanations of
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