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receipts, the burden of coming forward with offsetting costs or
expenses generally shifts to the taxpayer. Siravo v. United
States, 377 F.2d 469, 473-474 (1st Cir. 1967); Elwert v. United
States, 231 F.2d 928, 933 (9th Cir. 1956); United States v.
Bender, 218 F.2d 869, 871-872 (7th Cir. 1955); United States v.
Stayback, 212 F.2d 313, 317 (3d Cir. 1954).
Petitioner has stipulated that he omitted from his Federal
tax returns grain sale receipts of $75,799 in 1991, $39,900 in
1992, $24,481 in 1993, and $68,713 in 1994. Furthermore,
petitioner’s conviction under section 7206(1) is highly probative
that he received unreported receipts from the sale of crops.
Petitioner does not assert, and has not provided any
evidence, that the cost of goods sold for any of the years at
issue exceeds the cost of goods sold as reported on his 1991-94
returns. Thus, respondent has carried the burden of establishing
underpayments by clear and convincing evidence.
2. Fraudulent Intent
Respondent must also prove fraudulent intent. This burden
is met if it is shown that petitioner intended to evade taxes
known to be owing by conduct intended to conceal, mislead, or
otherwise prevent the collection of such taxes. Webb v.
Commissioner, 394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo.
1966-81. Fraud is never presumed; it must be established by
affirmative evidence. Beaver v. Commissioner, 55 T.C. 85, 92
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