- 7 - issues will be decided against petitioner. Rules 123(a) and (b), 142(a), 149. Respondent, however, bears the burden of proving fraud by clear and convincing evidence. Sec. 7454(a); Rule 142(b). In this regard, respondent presented evidence that petitioner had unreported income for each of the years in issue. In the course of presenting that evidence, respondent also satisfied the burden that is sometimes associated with determinations of unreported income. See Portillo v. Commissioner, 932 F.2d 1128, 1133 (5th Cir. 1991). The addition to tax for fraud is a civil sanction intended to safeguard the revenue and to reimburse the Government for the heavy expense of investigation and for the loss resulting from a taxpayer’s fraud. Helvering v. Mitchell, 303 U.S. 391, 401 (1938). Respondent has the burden of proving, by clear and convincing evidence, an underpayment for each year and that some part of the underpayment was due to fraud. If respondent establishes that any portion of the underpayment is attributable to fraud, the entire underpayment is treated as attributable to fraud and subjected to a 75-percent addition to tax or penalty, unless the taxpayer establishes that some part of the underpayment is not attributable to fraud. See sec. 6653(b)(2) for 1986, 1987, and 1988, and sec. 6663(b) for 1989 and 1990.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011