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and Social Security numbers;17 petitioner’s failure to make
estimated tax payments; and petitioner’s failure to cooperate
with respondent’s agents’ attempts to reconstruct his income.
Bradford v. Commissioner, supra at 308; DiLeo v. Commissioner,
supra at 875; Petzoldt v. Commissioner, supra at 701-702.
Petitioner has not presented any persuasive evidence to
rebut respondent’s proof of fraud. Mr. Davidson testified that
his review of petitioner’s bank records did not reveal any
evidence “that would give rise to a claim of fraud, insofar as
intentional withholding of information or anything of that sort.”
Other than Mr. Davidson’s comments, the only evidence petitioner
offered was his own testimony denying that he committed fraud.
The badges of fraud contained in petitioner’s deemed
admissions strongly indicate that petitioner intended to conceal
his income and avoid paying taxes. We conclude that respondent
has met his burden of proof, establishing by clear and convincing
evidence that all of petitioner’s underpayments for 1982 through
1987 were attributable to fraud. Petitioner is liable for
17At trial, respondent stated that the deemed admissions
relevant to the fraud issue contained information directly taken
from the criminal indictment. The record lacks additional
details about petitioner’s criminal conviction, making it unclear
whether the conspiracy and bank fraud charges related to work
that petitioner performed for a client or pertained solely to
petitioner’s personal financial activities and whether the
charges covered all of the years at issue. Regardless, however,
of the period or the activities covered by petitioner’s criminal
case, sufficient indicia of fraud still exist to support a
finding of fraud for each of the years at issue.
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Last modified: May 25, 2011