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acknowledged that petitioner’s 1990 return fraudulently under-
stated petitioner’s income by $125,000 and that petitioner’s 1991
return understated petitioner’s income by $150,000. Moreover, in
petitioner’s response, petitioner admits that “There clearly are
monies due and owing the IRS which the petitioner admits to and
wants to settle.”
On the instant record, we find that respondent has estab-
lished by clear and convincing evidence that there was an under-
payment of petitioner’s tax for each of its taxable years 1990
and 1991.
In order to prove fraudulent intent, the Commissioner must
prove by clear and convincing evidence that the taxpayer intended
to evade tax, which the taxpayer believed to be owing, by conduct
intended to conceal, mislead, or otherwise prevent the collection
of such tax. Laurins v. Commissioner, 889 F.2d 910, 913 (9th
Cir. 1989), affg. Norman v. Commissioner, T.C. Memo. 1987-265;
Parks v. Commissioner, supra. The existence of fraud is a
question of fact to be resolved upon consideration of the entire
record. DiLeo v. Commissioner, supra at 874; Gajewski v. Commis-
sioner, 67 T.C. 181, 199 (1976), affd. without published opinion
578 F.2d 1383 (8th Cir. 1978). Fraud is never presumed or
imputed and should not be found in circumstances which create at
most only suspicion. Toussaint v. Commissioner, 743 F.2d 309,
312 (5th Cir. 1984), affg. T.C. Memo. 1984-25; Petzoldt v.
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