- 19 - the IRS for nearly 30 years, reaching the highest possible grade allowed to nonmanagement agents, and was fully aware that those bribes are includable in income and should have been reported on his Federal tax returns. Petitioner did not report those bribes. He did not maintain any records of the bribes. All in all, we find that petitioner’s entire course of conduct reveals that he willfully intended to prevent the collection of tax he knew was owing on the illegal bribe income. We therefore find that the full amount of the underpayment for each year is attributable to petitioner's fraud. Accordingly, we sustain respondent's determination of additions to tax under sections 6653(b) and section 6653(b)(1). B. Section 6653(b)(2) Under section 6653(b)(2), an addition to tax equal to 50 percent of the interest payable under section 6601 is imposed on the portion of the underpayment attributable to fraud. Respondent bears the burden of proving by clear and convincing evidence the specific portion of the underpayment due to fraud in each year. DiLeo v. Commissioner, 96 T.C. 858, 873 (1991), affd. 959 F.2d 16 (2d Cir. 1992). Accordingly, to adjudicate an addition to tax under section 6653(b)(2), first we must examine the evidence and satisfy ourselves as to the amount that clearly and convincingly is an underpayment. Then, we must determine whether any or all of such amount clearly and convincingly is duePage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011