- 15 -
Commissioner, supra at 699-700. Direct evidence of the requisite
fraudulent intent is seldom available. Petzoldt v. Commissioner,
supra at 699; Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983).
Consequently, the Commissioner may prove fraud by circumstantial
evidence. Toussaint v. Commissioner, supra at 312; Rowlee v.
Commissioner, supra at 1123; see Marsellus v. Commissioner, 544
F.2d 883, 885 (5th Cir. 1977), affg. T.C. Memo. 1975-368.
The courts have identified a number of badges of fraud from
which fraudulent intent may be inferred, including (1) the
understatement of income, (2) the making of false and inconsis-
tent statements to revenue agents, and (3) the failure to cooper-
ate with tax authorities. See Bradford v. Commissioner, 796 F.2d
303, 307-308 (9th Cir. 1986), affg. T.C. Memo. 1984-601; Parks v.
Commissioner, 94 T.C. at 664-665. Although no single factor is
necessarily sufficient to establish fraud, the existence of
several indicia constitutes persuasive circumstantial evidence of
fraud. Petzoldt v. Commissioner, 92 T.C. at 700; see Bradford v.
Commissioner, supra at 307.
A corporation can act only through its officers and does not
escape responsibility for acts of its officers performed in that
capacity. DiLeo v. Commissioner, 96 T.C. at 875. It follows
that corporate fraud necessarily depends upon the fraudulent
intent of the corporate officers. Id. Thus, in determining
whether petitioner acted with the requisite fraudulent intent, we
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