- 15 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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