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meet their burden of proving error in respondent’s determinations
as to the deficiencies. See, e.g., Petzoldt v. Commissioner, 92
T.C. 661, 700 (1989); Habersham-Bey v. Commissioner, 78 T.C. 304,
312 (1982), and cases cited therein.
Where fraud is determined for each of several years,
respondent’s burden applies separately for each of the years.
See Estate of Stein v. Commissioner, 25 T.C. 940, 959-963 (1956),
affd. sub nom. Levine v. Commissioner, 250 F.2d 798 (2d Cir.
1958); McLaughlin v. Commissioner, 29 B.T.A. 247, 249 (1933). A
mere understatement of income does not establish fraud. See
Estate of Mazzoni v. Commissioner, 451 F.2d 197, 202 (3d Cir.
1971), affg. T.C. Memos. 1970-144 & 1970-37; Otsuki v.
Commissioner, 53 T.C. at 108.
In order to establish fraud as to Michael, respondent must
show that Michael intended to evade taxes which Michael knew or
believed were owed, by conduct intended to conceal, mislead, or
otherwise prevent the collection of taxes. See, e.g., Grossman
v. Commissioner, 182 F.3d 275, 277 (4th Cir. 1999), affg. T.C.
Memo. 1996-452; Powell v. Granquist, 252 F.2d 56, 60 (9th Cir.
1958); Danenberg v. Commissioner, 73 T.C. 370, 393 (1979); McGee
v. Commissioner, 61 T.C. 249, 256-257 (1973), affd. 519 F.2d 1121
(5th Cir. 1975). This intent may be inferred from circumstantial
evidence, see Powell v. Granquist, 252 F.2d at 61; Gajewski v.
Commissioner, 67 T.C. 181, 200 (1976), affd. without published
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