- 36 -
see also Marcus v. Commissioner, 70 T.C. 562, 577 (1978), affd.
without published opinion 621 F.2d 439 (5th Cir. 1980).
Mr. Del Bosque failed to report a large portion of his
income for 1987, 1988, and 1989, and Mr. Jacobsen failed to
report a large portion of his income for 1987 and 1988.
Petitioners assert that the income was gambling winnings.
Petitioners provided no explanation for underreporting that
income regardless of the source. 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. at 137; Webb v. Commissioner,
supra at 379; Lusk v. Commissioner, 250 F.2d 591, 594 (7th Cir.
1957), affg. T.C. Memo. 1955-119; Schwarzkopf v. Commissioner,
246 F.2d 731, 734 (3d Cir. 1957), affg. and remanding T.C. Memo.
1956-155; Kurnick v. Commissioner, 232 F.2d 678, 681 (6th Cir.
1956), affg. T.C. Memo. 1955-31.
2. Failure To Keep Adequate Books and Records
Taxpayers are required to maintain books and records
sufficient to show their tax liabilities. See sec. 6001.
Failure to do so is another indicium of fraudulent intent.
Bradford v. Commissioner, supra at 307.
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