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B.T.A. 424 (1939); Wilson v. Commissioner, 76 T.C. 623, 634
(1981). The Commissioner must show that the taxpayer intended to
evade taxes by conduct calculated to conceal, mislead, or
otherwise prevent the collection of taxes. Stoltzfus v. United
States, supra; Marcus v. Commissioner, 70 T.C. 562, 577 (1978),
affd. without published opinion 621 F.2d 439 (5th Cir. 1980).
Fraud is a question of fact that must be considered based on
an examination of the entire record and the taxpayer’s entire
course of conduct. Petzoldt v. Commissioner, 92 T.C. 661, 699
(1989); Recklitis v. Commissioner, 91 T.C. 874, 910 (1988);
Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983). Fraud is
never presumed and must be established by independent evidence of
fraudulent intent. Petzoldt v. Commissioner, supra at 699;
Recklitis v. Commissioner, supra at 910. Fraud is never imputed
or presumed, and courts will not sustain fraud on circumstances
that at most create only suspicion. Olinger v. Commissioner, 234
F.2d 823, 824 (5th Cir. 1956), affg. in part and revg. in part
T.C. Memo. 1955-9; Davis v. Commissioner, 184 F.2d 86, 87 (10th
Cir. 1950); Green v. Commissioner, 66 T.C. 538, 550 (1976). Mere
suspicion does not prove fraud, and the fact that the Court does
not find the taxpayer’s testimony wholly credible is not
sufficient to establish fraud. Cirillo v. Commissioner, 314 F.2d
478, 482 (3d Cir. 1963), affg. in part and revg. in part T.C.
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