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Commissioner, 113 T.C. 99, 102 (1999). Respondent has the burden
of proving, by clear and convincing evidence, an underpayment for
the year in issue and that some part of the underpayment for that
year is due to fraud. Sec. 7454(a); Rule 142(b). If respondent
establishes that any portion of the underpayment is attributable
to fraud, the entire underpayment is treated as attributable to
fraud and subjected to a 75-percent penalty, unless the taxpayer
establishes that some part of the underpayment is not
attributable to fraud. Sec. 6663(b). Respondent must show that
the taxpayer intended to conceal, mislead, or otherwise prevent
the collection of taxes. Katz v. Commissioner, 90 T.C. 1130,
1143 (1988).
The existence of fraud is a question of fact to be resolved
upon consideration of the entire record. King’s Court Mobile
Home Park, Inc. v. Commissioner, 98 T.C. 511, 516 (1992). Fraud
will never be presumed. Id.; Beaver v. Commissioner, 55 T.C. 85,
92 (1970). Fraud may, however, be proved by circumstantial
evidence and inferences drawn from the facts because direct proof
of a taxpayer’s intent is rarely available. Niedringhaus v.
Commissioner, 99 T.C. 202, 210 (1992). The taxpayer’s entire
course of conduct may establish the requisite fraudulent intent.
Stone v. Commissioner, 56 T.C. 213, 223-224 (1971). Fraudulent
intent may be inferred from various kinds of circumstantial
evidence, or “badges of fraud”, including the consistent
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