- 12 -
1963-333); and (5) petitioner's failure to provide complete and
accurate income records to the tax authorities (Grosshandler v.
Commissioner, 75 T.C. 1, 20 (1980)).
Because respondent has proven by clear and convincing
evidence that some portion of the underpayment is due to fraud,
the burden is on petitioner to prove the amount of the
underpayment not attributable to fraud. Petitioner has stated
two arguments in this regard: (1) That he did not receive any of
the stolen funds or (2) that, if he did receive any of the funds,
his unreported income was only in the amount of the Southern
checks payable to him. We have rejected both of these arguments.
Respondent's determination regarding the addition to tax for
fraud will be sustained. Because we have upheld respondent's
fraud determination, we need not examine the alternative
additions to tax asserted by respondent.
Decision will be entered
for respondent.
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