- 8 - restitution in the amount of $115,564.30 or the amount of tax liability, whichever was less. On March 16, 1994, respondent issued notices of deficiency to the Gilchrists and Door Control. OPINION Respondent determined that petitioners were liable for additions to tax for fraud under section 6653(b)(1)(A) and (B) as in effect for 1986 and 1987, and section 6653(b)(1) as in effect for 1988. Respondent also determined that Door Control was liable for an addition to tax for fraud under section 6653(b)(1) as in effect for 1985. Fraud is defined as an intentional wrongdoing designed to evade tax. Powell v. Granquist, 252 F.2d 56, 60 (9th Cir. 1958); Miller v. Commissioner, 94 T.C. 316, 332 (1990). The existence of fraud is a question of fact to be resolved upon consideration of the entire record. Loftin & Woodard, Inc. v. United States, 577 F.2d 1206, 1236 (5th Cir. 1978); Gajewski v. Commissioner, 67 T.C. 181, 199 (1976), affd. without published opinion 578 F.2d 1383 (8th Cir. 1978). Respondent bears the burden of proving fraud by clear and convincing evidence. Sec. 7454(a); Rule 142(b). To carry her burden of proof, respondent must show that (1) an underpayment of tax exists and (2) some portion of the underpayment is due to fraud. Petzoldt v. Commissioner, 92 T.C. 661, 699 (1989). Where respondent determines fraud for severalPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011