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conclusion. That the parties stipulated the lack of records
during the audit and respondent used the indirect bank deposits
method to show income further demonstrate that petitioner failed
to maintain adequate records.
Petitioner bears the burden of proof to show that he was not
negligent. Rule 142(a); Patterson v. Commissioner, 740 F.2d 927,
930 (11th Cir. 1984)(citing Marcello v. Commissioner, 380 F.2d at
506-507), affg. T.C. Memo. 1983-655. Petitioner must furnish
evidence to show that he exercised reasonable care--in this case
by showing that he did indeed keep adequate records. However,
petitioner never addressed this issue on the record at trial, and
of course, he has not filed a brief. In view of the lack of
evidence rebutting respondent's determination, we find that
petitioner is liable for the additions to tax under sections
6653(a)(1) and (2), based upon the deficiencies to be determined
in the Rule 155 computation.
Issue 3. Additions to Tax for 1986 and 1987
Respondent determined that petitioner was liable for
additions to tax under three different Code sections: (1) section
6653(b) for civil fraud; (2) section 6661 for failing to pay
estimated tax; and (3) section 6654 for substantial underpayment
of tax.
a. Civil tax fraud--section 6653(b)
The addition to tax for fraud is a civil sanction provided
primarily to safeguard the revenue and recoup the heavy costs of
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