-14-
concealment of assets; (6) failure to cooperate with taxing
authorities; (7) filing false Forms W-4; (8) failure to make
estimated tax payments; (9) dealing in cash; (10) engaging in a
pattern of behavior that indicates an intent to mislead; and (11)
filing false documents. See Bradford v. Commissioner, 796 F.2d
303, 307 (9th Cir. 1986), affg. T.C. Memo. 1984-601; Cooley v.
Commissioner, T.C. Memo. 2004-49. Although no single factor is
necessarily sufficient to establish fraud, a combination of
several of these factors may be persuasive evidence of fraud.
Solomon v. Commissioner, 732 F.2d 1459, 1461 (6th Cir. 1984),
affg. per curiam T.C. Memo. 1982-603.
2000
Respondent determined that petitioner is liable for a fraud
penalty under section 6663 for 2000. It was deemed admitted
under Rule 37(c) that petitioner fraudulently, knowingly,
intentionally, and willfully understated his income in the amount
of $14,050. However, after concessions, respondent asserts that
petitioner understated his year 2000 income by failing to report
a partnership distribution of $214. In comparison, petitioner
listed on his return, filed approximately 43 months late, $99,795
of adjusted gross income. Petitioner’s entire course of action
demonstrates many of the badges of fraud listed above, notably
failure to file returns promptly, keeping inadequate records,
filing false W-4 Forms, and failing to cooperate with taxing
authorities. However, petitioner’s failure to include the
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