Adnan Al Kaissy - Page 15

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            defendant is placed on probation for THREE (3) years", fined                               
            $5,000, and required to perform 100 hours of community service.                            
                  The major adjustment made by respondent in the notice of                             
            deficiency for the years 1982 through 1984 was to disallow the                             
            air fare deductions claimed by petitioner and to assert the                                
            addition to tax for fraud.  Certain other minor adjustments were                           
            also made by respondent, not involving fraud, and other additions                          
            to tax as set forth above were asserted.                                                   
                  The only controversy in this case concerns whether any part                          
            of petitioner's understatement of his income tax for the years                             
            1982, 1983, and 1984 was due to fraud with intent to evade tax.                            
            If fraud is established, petitioner does not question                                      
            respondent's computation.  Absent fraud, petitioner claims that                            
            the period for assessment and collection of tax had expired                                
            before the time of the issuance of the notice of deficiency and,                           
            therefore, assessment and collection of any deficiency are                                 
            barred.  Respondent does not question that, absent fraud,                                  
            assessment and collection of any deficiency for 1982, 1983, or                             
            1984 are barred.                                                                           
                  Section 6653(b)(1) provides for an addition to tax of 50                             
            percent of the underpayment if any part of any underpayment is                             
            due to fraud.  Section 6653(b)(2) provides for a further addition                          
            of 50 percent of the interest due under section 6601 upon that                             

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Last modified: May 25, 2011