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5. Filing False Returns
Filing a false income tax return may be evidence that the
taxpayer fraudulently intended to evade taxes. Bradford v.
Commissioner, 796 F.2d at 308; Wright v. Commissioner, supra at
643-644. In the plea agreements in their criminal tax
proceedings, petitioners admitted that they filed false tax
returns for 1987, 1988, and/or 1989 and omitted substantial
income from those returns with the intent to evade taxes. They
failed to submit credible evidence to contradict those admissions
or show that they filed the false returns for any reason other
than to evade taxes they knew to be owing. Petitioners’ filing
of false tax returns each year is a strong indication of
fraudulent intent with respect to those years. See Klassie v.
United States, 289 F.2d at 102.
6. Pattern of Behavior Which Indicates Intent to
Mislead
A taxpayer’s course of conduct or a pattern of conduct may
establish, by inference, an intent to conceal or mislead. Spies
v. United States, supra at 499; Webb v. Commissioner, 394 F.2d at
379; Otsuki v. Commissioner, 53 T.C. at 105-106.
Mr. Del Bosque admitted in his plea agreement in his
criminal tax proceeding that he schemed with Mr. Jacobsen to hide
income and evade taxes, filed false tax returns for 1987, 1988,
and 1989 in furtherance of that scheme, and omitted substantial
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