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Petitioner did not provide any information about the professional
qualifications of the named individuals.
Section 6651(f) provides a penalty of 75 percent of the
amount required to be shown as tax on unfiled returns if the
failure to file the returns is fraudulent. Under section
6651(f), as in any other case involving the issue of fraud with
intent to evade tax, the burden of proof with respect to that
issue is on the Commissioner, and that burden of proof is to be
carried by clear and convincing evidence. Sec. 7454(a); Rule
142(b); Clayton v. Commissioner, 102 T.C. 632, 646-653 (1994).
Badges of fraud, such as a pattern of unreported income, failing
to file returns, concealment of assets by purporting to convey
them to a trust, failure to maintain or produce records or
otherwise cooperate with the IRS, and submission of frivolous
arguments may be established as matters deemed admitted. See,
e.g., Doncaster v. Commissioner, 77 T.C. 334 (1981); Houser v.
Commissioner, T.C. Memo. 2000-111; Newton v. Commissioner, T.C.
Memo. 1998-422; Campbell v. Commissioner, T.C. Memo. 1997-415;
Collins v. Commissioner, T.C. Memo. 1997-291; Devlin v.
Commissioner, T.C. Memo. 1997-256.
Even if we were to disregard the conclusory allegations of
fraudulent intent to which petitioner admitted by failing to file
a reply, the undisputed facts would constitute clear and
convincing evidence of fraud in this case. We have considered
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