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the investigation of their tax liability, petitioners withheld
information from the revenue agents as to the amount of their
income, and also concealed the fact of their prior convictions
for illegally obtaining such income.
We think respondent has satisfied the burden of proving
fraud in this case by the clear and convincing evidence required
by section 7454(a) and Rule 142(b). Cf. Green v. Commissioner,
T.C. Memo. 1993-152, affd. without published opinion 33 F.3d 1378
(5th Cir. 1994).
This leaves for discussion the imposition of additions to
tax by respondent under section 6654 for the failure by
petitioners to pay estimated tax. Respondent determined that the
addition to tax for failure to pay an estimated tax was
applicable for each of the years here in question, and
petitioners bear the burden of proving that respondent's
determination of the addition to tax is erroneous. Rule 142(a);
Grosshandler v. Commissioner, 75 T.C. 1 (1980). The statute is
specific, and unless the taxpayer can bring himself within one of
the four enumerated exceptions thereto, its application is
mandatory. Estate of Ruben v. Commissioner, 33 T.C. 1071 (1960);
Grosshandler v. Commissioner, supra. No such showing has been
made in this case, and we therefore sustain respondent on this
issue.
Decision will be entered
for respondent.
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