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We must now determine what portion of the underpayments is
attributable to fraud for 1983, 1984, 1985, and 1986. We must
make this determination because, as explained, for 1983, 1984,
and 1985, the section 6653(b)(2) increased interest for fraud
applies only to the portion of the underpayment that is
attributable to fraud. Moreover, for 1986, the entire fraud
addition to tax applies only to the portion of the underpayment
that is attributable to fraud. Sec. 6653(b)(1)(A) and (B).
For 1983, 1984, and 1985, for purposes of the section
6653(b)(2) increased interest for fraud, respondent has the
burden of proving by clear and convincing evidence the portion of
the underpayment attributable to fraud. Sec. 7454(a); Rule
142(b). For 1986, after respondent proves that some portion of
the underpayment is attributable to fraud, the entire
underpayment is treated as attributable to fraud, except as to
any portion which the taxpayer proves is not attributable to
fraud. Sec. 6653(b)(2); Houser v. Commissioner, T.C. Memo. 1995-
330.
We now address that question with regard to each of the
various adjustments that we have sustained herein.
Fraud- and Non-Fraud-Related Adjustments Relating to Elvin
With regard to Elvin, we conclude that for 1983, 1984, 1985,
and 1986, the adjustments relating to the YOC-Elvin Account are
not attributable to fraud. During the years in issue and prior
to respondent's audit, Elvin made some significant repayments on
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