- 9 -
Bradford v. Commissioner, supra at 307; Petzoldt v. Commissioner,
supra at 700. An intent to mislead may be inferred from a
pattern of conduct. Webb v. Commissioner, supra at 379.
The following badges of fraud are present in this case: (1)
Substantially understating income for several years, (2)
providing incomplete or misleading information to his tax
preparer, and (3) being convicted of filing false returns under
section 7206(1). Bradford v. Commissioner, supra at 307-308;
Korecky v. Commissioner, 781 F.2d 1566, 1569 (11th Cir. 1986),
affg. T.C. Memo. 1985-63; Ruark v. Commissioner, 449 F.2d 311,
312-313 (9th Cir. 1971), affg. T.C. Memo. 1969-48; Wright v.
Commissioner, 84 T.C. 636, 643-644 (1985); Farber v.
Commissioner, 43 T.C. 407, 420 (1965), modified 44 T.C. 408
(1965); Medlin v. Commissioner, T.C. Memo. 2003-224; Le v.
Commissioner, T.C. Memo. 2003-219; Sowards v. Commissioner, T.C.
Memo. 2003-180; Ishler v. Commissioner, T.C. Memo. 2002-79.
Over a 4-year period, petitioner consistently underreported
large amounts of gross receipts and net income. Petitioner
provided no explanation for underreporting his gross receipts. A
consistent pattern of underreporting large amounts of income over
a period of years is substantial evidence bearing upon an intent
to defraud, particularly where the reason for such understatement
is not satisfactorily explained or shown to be due to innocent
mistake. Holland v. United States, 348 U.S. 121, 137 (1954);
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