-299-
to fraud. King’s Court Mobile Home Park, Inc. v. Commissioner,
98 T.C. 511, 515-516 (1992); Truesdell v. Commissioner, 89 T.C.
1280, 1301 (1987).
Fraud is an intentional wrongdoing by the taxpayer with the
specific purpose of evading a tax known or believed to be owing.
Stoltzfus v. United States, 398 F.2d 1002, 1004 (3d Cir. 1968);
McGee v. Commissioner, 61 T.C. 249, 256 (1973), affd. 519 F.2d
1121 (5th Cir. 1975). The Commissioner’s burden of proving fraud
is met if it is shown that the taxpayer intended to evade taxes
known to be owing by conduct intended to conceal, mislead, or
otherwise prevent the collection of taxes. Stoltzfus v. United
States, supra at 1004-1005; Rowlee v. Commissioner, 80 T.C. 1111,
1123 (1983).
The existence of fraud is a question of fact to be resolved
from the entire record. DiLeo v. Commissioner, 96 T.C. 858, 874
(1991), affd. 959 F.2d 16 (2d Cir. 1992); Gajewski v.
Commissioner, 67 T.C. 181, 199 (1976), affd. without published
opinion 578 F.2d 1383 (8th Cir. 1978). The taxpayer’s entire
course of conduct can be indicative of fraud. Stone v.
Commissioner, 56 T.C. 213, 224 (1971). Because fraud can rarely
be established by direct proof of the taxpayer’s intention, fraud
may be established by circumstantial evidence and reasonable
inferences drawn from the record. DiLeo v. Commissioner, supra
at 874-875; Rowlee v. Commissioner, supra at 1123. However, the
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