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year. Drieborg v. Commissioner, 225 F.2d 216, 219-220 (6th Cir.
1955), affg. in part and revg. in part a Memorandum Opinion of
this Court. With respect to subparagraphs (A) and (B) of section
6653(b)(1),3 applicable to petitioner's taxable year 1987 and
subsection 6653(b)(1),4 applicable to petitioner's taxable year
3Sec. 1503(a) of the Tax Reform Act of 1986, Pub. L. 99-514,
100 Stat. 2085, 2742-2743, amended sec. 6653(b) effective for
returns the due date of which, determined without regard to
extensions, was after December 31, 1986. Following its
amendment, sec. 6653(b) provides in pertinent 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 the sum of--
(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.
4Sec. 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)(1) effective for returns the due date for
which, determined without regard to extensions, is after December
(continued...)
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