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the underpayment which is attributable to fraud. Secs. 6653(b),
6663(a).
Respondent has the burden of proving fraud by clear and
convincing evidence. Sec. 7454(a); Rule 142(b). First,
respondent must prove the existence of an underpayment. Parks v.
Commissioner, 94 T.C. 654, 660 (1990). Respondent may not rely
on petitioners' failure to carry the burden of proof as to the
underlying deficiency. Id. at 660-661; Petzoldt v. Commissioner,
92 T.C. 661, 700 (1989). Second, respondent must show that
petitioner husband intended to evade taxes he believed to be
owing by conduct intended to conceal, mislead, or otherwise
prevent tax collection. Stoltzfus v. United States, 398 F.2d
1002, 1004 (3d Cir. 1968); Parks v. Commissioner, supra at 661;
Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983).
b. Underpayment
We conclude that respondent has clearly and convincingly
proven that petitioner husband underreported tax for 1988 and
1989.
c. Fraudulent Intent
Respondent must prove by clear and convincing evidence
that petitioner husband had fraudulent intent. Parks v.
Commissioner, supra at 664. For purposes of section 6653(b),
fraud means actual, intentional wrongdoing, Mitchell v.
Commissioner, 118 F.2d 308, 310 (5th Cir. 1941), revg. 40 B.T.A.
424 (1939); i.e., the intentional commission of an act for the
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