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(3) section 6653(b)(1) for the Lees' 1988 taxable year.8 For
purposes of section 6653(b)(2), which is applicable to
7(...continued)
(A) 75 percent of the portion of the underpayment
which is attributable to fraud, and
(B) an amount equal to 50 percent of the interest
payable under section 6601 with respect to such portion
for the period beginning on the last day prescribed by
law for payment of such underpayment (determined
without regard to any extension) and ending on the date
of the assessment of the tax or, if earlier, the date
of the payment of the tax.
(2) Determination of portion attributable to fraud.--
If the Secretary establishes that any portion of an
underpayment is attributable to fraud, the entire
underpayment shall be treated as attributable to fraud,
except with respect to any portion of the underpayment which
the taxpayer establishes is not attributable to fraud.
8 Sec. 1015(b)(2)(B) of the Technical and Miscellaneous
Revenue Act of 1988, Pub. L. 100-647, 102 Stat. 3342, 3569,
amended sec. 6653(b) effective for returns the due date of which,
without regard to extensions, was after Dec. 31, 1988. Following
its amendment, sec. 6653(b) provides in relevant part:
(1) In general.--If any part of any underpayment * * *
of tax required to be shown on a return is due to fraud,
there shall be added to the tax an amount equal to 75
percent of the portion of the underpayment which is
attributable to fraud.
(2) Determination of portion attributable to
fraud.--If the Secretary establishes that any portion
of an underpayment is attributable to fraud, the entire
underpayment shall be treated as attributable to fraud,
except with respect to any portion of the underpayment
which the taxpayer establishes is not attributable to
fraud.
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