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Douge v. Commissioner, 899 F.2d 164, 168 (2d Cir. 1990); Bradford
v. Commissioner, supra; Recklitis v. Commissioner, 91 T.C. 874,
910 (1988). This list is nonexclusive. Niedringhaus v.
Commissioner, supra. Although no single factor is necessarily
sufficient to establish fraud, the existence of several indicia
may constitute persuasive circumstantial evidence of fraud. See
Bradford v. Commissioner, supra.
A taxpayer’s filing of income tax returns in prior years is
evidence that the taxpayer was aware of his or her obligation to
file such returns. Petzoldt v. Commissioner, 92 T.C. 661 (1989);
see also Stalker v. Commissioner, T.C. Memo. 1981-544. Here, the
Masons had a history of consistently filing income tax returns
for almost 40 years. They did not file their joint income tax
return for 1987 until May 1991. After that, they did not file an
income tax return until October 1997 when they filed a return for
1996. While the record does not reflect petitioner’s educational
background, he was experienced in business affairs. He and his
wife held interests in four Sonic restaurants and owned two
commercial properties. Respondent contends, and we agree, that
given petitioner’s business background and other facts in the
record, he was aware of his obligation to file income tax
returns.
Failure to file income tax returns, even over an extended
period of time, does not per se establish fraud. Grosshandler v.
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