- 11 -
Accordingly, we are convinced that respondent has proven by
clear and convincing evidence that an underpayment exists for the
1992 and 1993 tax years.
Respondent has thus carried his burden of proving that there
was an underpayment of tax for the 1992 and 1993 tax years.
Petitioner has not introduced cogent evidence to support his
claim that the underpayment is less than that determined by
respondent. In particular, petitioner has not introduced
sufficient evidence to support his claim that the CNC
distributions he received in 1992 and 1993 were a return of
capital.
B. Intent To Defraud
As stated above, the Commissioner bears the burden of
proving fraud by clear and convincing evidence. Fraud is the
intentional wrongdoing on the part of a taxpayer to evade a tax
believed to be owing. Sadler v. Commissioner, 113 T.C. at 102;
DiLeo v. Commissioner, supra at 874. Whether petitioner’s
underpayments of tax for 1992 and 1993 were due to fraud is a
question of fact that must be considered based on an examination
of the entire record and petitioner’s entire course of conduct.
See DiLeo v. Commissioner, supra at 874. Fraud may be proved by
circumstantial evidence. Id. No single factor is necessarily
dispositive, but a combination of several factors is persuasive
circumstantial evidence of fraud. Petzoldt v. Commissioner, 92
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011