Roy J. Chase - Page 8

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          Cir. 1990); United States v. Ward, 833 F.2d 1538, 1539 (11th Cir.           
          1987); Biermann v. Commissioner, 769 F.2d 707 (11th Cir. 1985);             
          Waters v. Commissioner, 764 F.2d 1389 (11th Cir. 1985); Crain v.            
          Commissioner, 737 F.2d 1417 (5th Cir. 1984); Knighten v.                    
          Commissioner, 702 F.2d 59 (5th Cir. 1983); Lonsdale v.                      
          Commissioner, 661 F.2d 71, 72 (5th Cir. 1981), affg. T.C. Memo.             
          1981-122; Reading v. Commissioner, 70 T.C. 730 (1978), affd. 614            
          F.2d 159 (8th Cir. 1980).                                                   
               In the criminal context, the Government was required to                
          prove petitioner’s guilt beyond a reasonable doubt.  In this                
          case, respondent must prove, by clear and convincing evidence,              
          that petitioner had an underpayment of tax for 1987 and 1988 due            
          to fraud (sec. 6653(b)) and that his failure to file tax returns            
          for the other years in issue was fraudulent (sec. 6651(f)).  Sec.           
          7454(a); Rule 142(b).  Similar standards for proving fraud apply            
          under either statute.  See Clayton v. Commissioner, 102 T.C. 632,           
          653 (1994); Niedringhaus v. Commissioner, 99 T.C. 202, 211-213              
          (1992).  Fraud may be proved by circumstantial evidence, and the            
          taxpayer’s entire course of conduct may establish the requisite             
          fraudulent intent.  Rowlee v. Commissioner, 80 T.C. 1111, 1123              
          (1983).  Circumstantial evidence of fraud includes “badges of               
          fraud” such as those present here:  A longtime pattern of failure           
          to file returns, failure to report substantial amounts of income,           
          failure to cooperate with taxing authorities in determining the             






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