- 2 -
Additions to Tax3
Sec. Sec. Sec.
Year Deficiency 6653(b)(1)(A) 6653(b)(1)(B) 6653(b)(1)
1987 -0- $48,272.78 $6,565.11 ---
1988 -0- --- --- $39,920.66
Background
Petitioner invoked the jurisdiction of this Court on
November 23, 1994, by timely filing a petition for
redetermination. Petitioner resided in Schnecksville,
Pennsylvania, at the time the petition was filed. Respondent's
answer, filed on March 6, 1995, after an extension to file the
answer was granted, asserted affirmative allegations of fact in
support of the foregoing additions to tax for fraud.
Respondent's answer reads, in pertinent part, as follows:
7. FURTHER ANSWERING the petition, and in support of the
determination that a part of the underpayments of tax
required to be shown on the petitioner's income tax returns
for the taxable years 1987 and 1988 are due to fraud, the
respondent alleges:
2(...continued)
subsequent to being contacted by the Internal Revenue Service
regarding the examination of his originally filed 1987 and 1988
returns, petitioner filed amended returns wherein he admitted
understating his tax liabilities for 1987 and 1988 in the amounts
of $64,363.71 and $53,227.64, respectively. The filing of
amended returns, however, does not vitiate any fraud perpetrated
when the returns were due. See Badaracco v. Commissioner, 464
U.S. 386, 394 (1984).
3 The additions to tax for fraud determined by respondent in the
notices of deficiency were based on the understated tax
liabilities reported by petitioner on his amended 1987 and 1988
returns.
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