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entitled to any losses arising from the Real Estate partnerships.
Petitioner also is not entitled to any losses from Imperial
Finance. In Fredkin v. Commissioner, T.C. Memo. 1986-154, affd.
870 F.2d 801 (1st Cir. 1989), this Court disallowed claimed
royalty deductions flowing from the corporation Imperial Finance
NV. By order dated July 21, 1993, the Court's opinion in the
Fredkin case was deemed determinative of the Imperial Finance
issues in this case. We find no genuine issue of material fact
on this issue. We shall grant respondent's motion for partial
summary judgment that petitioner is not entitled to carry forward
certain net operating losses to 1976 through 1981.
Section 6653(b) Addition to Tax for Fraud
Section 6653(b) provides for the imposition of an addition
to tax if any part of any underpayment of tax required to be
shown on the return is due to fraud. Fraud has been described as
an intent to evade taxes known to be owing by conduct intended to
mislead, conceal, or prevent tax collection. Hebrank v.
Commissioner, 81 T.C. 640, 642 (1983); Rowlee v. Commissioner, 80
T.C. 1111, 1123 (1983); McDonald v. Commissioner, T.C. Memo.
1996-87. Respondent has the burden of proving by clear and
convincing evidence two elements: (1) The existence of an
underpayment of tax for each year, and (2) that some part of the
underpayment is due to fraud with an intent to evade tax. Sec.
7454(a); Rule 142(b); Hebrank v. Commissioner, supra.
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