-11- The facts alleged in respondent’s affirmative pleadings are sufficient to establish fraud by clear and convincing evidence. Petitioner received substantial amounts of unreported income. Bradford v. Commissioner, 796 F.2d 303, 308 (9th Cir. 1986), affg. T.C. Memo. 1984-601. Petitioner’s pattern of substantially underreporting income for several years is strong evidence of fraud, Holland v. United States, 348 U.S. 121, 137-139 (1954), as is the fact that he deliberately overstated his deductions, Drobny v. Commissioner, 86 T.C. 1326, 1349-1351 (1986). The facts pleaded in respondent's answer clearly establish that petitioner fraudulently underpaid his income taxes for 1988 and 1989. Thus, we will grant respondent's motion for default pursuant to Rule 123(a). An appropriate order and decision will be entered.Page: Previous 1 2 3 4 5 6 7 8 9 10 11
Last modified: May 25, 2011