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the tax laws, (7) giving implausible or inconsistent explanations
of behavior, and (8) failing to make estimated tax payments.7
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.
1. Failing To File Income Tax Returns
A taxpayer’s intelligence, education, and tax expertise are
relevant in determining fraudulent intent. Stephenson v.
Commissioner, 79 T.C. 995, 1006 (1982), affd. 748 F.2d 331 (6th
Cir. 1984); Iley v. Commissioner, 19 T.C. 631, 635 (1952).
Respondent argues that given petitioners’ business background and
other facts in the record, they were aware of their obligation to
file income tax returns. We agree.
Mr. Runkle operated a bicycle sales business for 14 years
and has been a self-employed independent insurance agent. He has
held an LUTCF life insurance certification since at least 1992,
and he obtained an associate’s degree as a paralegal through a
correspondence school in the mid-1990s. By his own testimony he
7We address petitioners’ failure to pay estimated tax
payments infra under the subheading entitled “Estimated Tax
Addition.”
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