Edward D. Tonitis - Page 6

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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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