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tax returns, on petitioner's 1987 amended Federal income tax
return, and as now agreed to by petitioner and respondent.
Gross Income
As Reported On As Reported On
Year Original Returns Amended Return As Agreed To
1986 $10,482 -- $32,248
1987 20,316 $30,504 37,166
OPINION
For 1986 and 1987, additions to tax for fraud are equal to
75 percent of the portion of an underpayment that is attributable
to fraud, plus an amount equal to 50 percent of interest payable
under section 6601 with respect to such portion. Sec. 6653(b)(1)
and (2).
The existence of fraud involves a question of fact. Parks
v. Commissioner, 94 T.C. 654, 660 (1990); Gajewski v.
Commissioner, 67 T.C. 181, 199 (1976), affd. without published
opinion 578 F.2d 1383 (8th Cir. 1978). Respondent must establish
by clear and convincing evidence that there was an underpayment
of tax and that the underpayment was due to the taxpayer’s
fraudulent intent. Sec. 7454; Rule 142(b); King's Court Mobile
Home Park, Inc. v. Commissioner, 98 T.C. 511, 515 (1992).
Fraudulent intent is defined as "actual, intentional
wrongdoing, and the intent required is the specific purpose to
evade a tax believed to be owing." Estate of Temple v.
Commissioner, 67 T.C. 143, 159 (1976).
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