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a. Underpayments
The mere fact that we have sustained respondent's deficiency
determination does not mean that petitioner underpaid his taxes
for purposes of the additions to tax for fraud. Where, as here,
we have sustained respondent's determination of a deficiency
mainly by virtue of petitioners' failure to carry their burden of
proof, we will not allow respondent to rely merely on that
failure to sustain her burden of proving fraud. We will not
bootstrap a finding of fraud upon a taxpayer's failure to
disprove the Commissioner's deficiency determination.
Parks v. Commissioner, supra at 660-661.
We have carefully reviewed the record. Following our
review, we conclude that respondent has clearly and convincingly
proven that petitioner underpaid his taxes for each year in
issue. See sec. 6653(c)(1) (an "underpayment" generally is the
same as a "deficiency" under sec. 6211). The record clearly
convinces us that petitioner had gross income that was not
reported on his 1980 through 1982 tax returns.
b. Fraudulent Intent
To establish fraud under section 6653(b) (for 1980 and 1981)
and section 6653(b)(1) (for 1982), respondent must clearly and
convincingly prove that petitioner meant to evade the payment of
taxes. Douge v. Commissioner, 899 F.2d 164, 168 (2d Cir. 1990);
Kahr v. Commissioner, 414 F.2d 621 (2d Cir. 1969), affg. in part
and revg. in part 48 T.C. 929 (1967); Rowlee v. Commissioner,
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