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Respondent has the burden of proof, by clear and convincing
evidence, on the fraud issue; petitioner has the burden of proof,
by a preponderance of the evidence, on the deficiencies and non-
fraud additions. The sparse record of events described in our
findings of fact does not compel a holding in favor of either
party's contentions. Cf. Ishijima v. Commissioner, T.C. Memo.
1994-353. For the reasons described below, we find that
respondent has not proven fraud by clear and convincing evidence
beyond what necessarily flows from petitioner's guilty plea in
the criminal case and his concessions in the case at hand with
respect to the year 1983. Because petitioner offered no proof,
he has not borne his burdens of disproving the deficiencies and
the nonfraud additions.
Issue 1: 1983--Section 6653(b)(1) and (2)
A. Section 6653(b)(1). Section 6653(b)(1) imposes an
addition to tax of 50 percent of the underpayment of tax required
to be shown on the return if any part of the underpayment is due
to fraud. Respondent bears the burden of proving by clear and
convincing evidence that (1) petitioner has an underpayment for
the taxable year, and (2) that some part of the underpayment is
due to fraud. Sec. 7454(a); Rule 142(b); DiLeo v. Commissioner,
96 T.C. 858, 873 (1991), affd. 959 F.2d 16 (2d Cir. 1992); Stone
v. Commissioner, 56 T.C. 213, 220 (1971).
Conviction of criminal tax evasion under section 7201
collaterally estops a taxpayer from denying that the fraud
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