Michael K. Wolfe and Rosemarie E. Wolfe - Page 8

                                          8                                           
          the investigation of their tax liability, petitioners withheld              
          information from the revenue agents as to the amount of their               
          income, and also concealed the fact of their prior convictions              
          for illegally obtaining such income.                                        
               We think respondent has satisfied the burden of proving                
          fraud in this case by the clear and convincing evidence required            
          by section 7454(a) and Rule 142(b).  Cf. Green v. Commissioner,             
          T.C. Memo. 1993-152, affd. without published opinion 33 F.3d 1378           
          (5th Cir. 1994).                                                            
               This leaves for discussion the imposition of additions to              
          tax by respondent under section 6654 for the failure by                     
          petitioners to pay estimated tax.  Respondent determined that the           
          addition to tax for failure to pay an estimated tax was                     
          applicable for each of the years here in question, and                      
          petitioners bear the burden of proving that respondent's                    
          determination of the addition to tax is erroneous.  Rule 142(a);            
          Grosshandler v. Commissioner, 75 T.C. 1 (1980).  The statute is             
          specific, and unless the taxpayer can bring himself within one of           
          the four enumerated exceptions thereto, its application is                  
          mandatory.  Estate of Ruben v. Commissioner, 33 T.C. 1071 (1960);           
          Grosshandler v. Commissioner, supra.  No such showing has been              
          made in this case, and we therefore sustain respondent on this              
          issue.                                                                      
                                             Decision will be entered                 
                                        for respondent.                               




Page:  Previous  1  2  3  4  5  6  7  8  

Last modified: May 25, 2011