Evans

MEMORANDUM

In these consolidated appeals, Wayne C. Evans and Madelyn F. Evans appeal pro se from the Tax Court’s decision, following a bench trial, upholding the Commissioner of Internal Revenue’s determination of deficiencies and penalties for tax years 1995 and 1996. We have jurisdiction under 26 U.S.C. § 7482 (a). We review de novo the Tax Court’s conclusions of law and for clear error the Tax Court’s factual determinations. Kelley v. Comm’r, 45 F.3d 348 , 850 (9th Cir.1995). We affirm.

The Tax Court did not clearly err in concluding that the three-year statute of limitations in 26 U.S.C. § 6501 (a) does not apply and that the penalty under 26 U.S.C. § 6663 was properly imposed on Wayne Evans because there was clear and convincing evidence that the underpayment of income in the Evans’s 1995 and 1996 tax returns was fraudulent. See Laurins v. Comm’r, 889 F.2d 910, 913 (9th Cir.1989) (setting forth circumstantial evidence, or badges of fraud, from which court can infer fraudulent intent).

The Tax Court did not clearly err in sustaining the Commissioner’s deficiency determinations and determining that the Evans failed to produce sufficient evidence to demonstrate their…