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was included with the records turned over to the U.S. attorney's
office for the criminal trial. However, respondent has failed to
produce any Form 1099.
The facts of this case raise the suspicion that petitioner
earned and received fees from Walter Capital that were paid in
the form of checks to the order of Joe Bass. However,
respondent's reliance on one witness who could not recollect the
events surrounding the payments and her failure to provide any
additional documentary evidence, in the form of the Form 1099,
does not elevate our suspicion to the level of certitude required
by the clear and convincing standard. Respondent has failed to
persuade us that there is any underpayment with respect to the
Walter Capital checks to the order of Joe Bass.
We need not reach the question of fraudulent intent for 1984
because respondent has failed to prove an underpayment for 1984.
Because respondent has failed to prove by clear and convincing
evidence that petitioner had an underpayment resulting from the
F&M jewelry purchase, the purchase from W&Y, or the Walter
Capital payments, we find no section 6653(b)(1) addition to tax
for fraud for 1984.
B. Section 6653(b)(2). Nor do we uphold a section
6653(b)(2) addition to tax for 1984. By dint of the foregoing
section 6653(b)(1) analysis, we have concluded that respondent
has not carried her burden of proving by clear and convincing
evidence that there is any underpayment for 1984 that was due to
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