- 15 -
53 T.C. 96, 105 (1969). For 1986 and 1987, section 6653(b)(1)(A)
provides for a 75-percent addition to tax on the portion of the
underpayment which is attributable to fraud, and section
6653(b)(1)(B) provides for an addition equal to 50 percent of the
interest payable on such portion. For 1988, section 6653(b)(1)
provides for a 75-percent addition to tax on the portion of the
underpayment that is attributable to fraud.
Fraud is intentional wrongdoing on the part of the taxpayer
with the specific purpose to evade a tax believed to be owing.
McGee v. Commissioner, 61 T.C. 249, 256 (1973), affd. 519 F.2d
1121 (5th Cir. 1975). The existence of fraud is a question of
fact to be resolved from the entire record. Gajewski v.
Commissioner, 67 T.C. 181, 199 (1976), affd. without published
opinion 578 F.2d 1383 (8th Cir. 1978). Respondent's burden is
met if she shows that petitioner intended to evade taxes known to
be owing by conduct intended to conceal income, mislead, or
otherwise prevent the collection of taxes. Stoltzfus v. United
States, 398 F.2d 1002, 1004 (3d Cir. 1968); Rowlee v.
Commissioner, 80 T.C. 1111, 1123 (1983). Respondent must meet
this burden through affirmative evidence because fraud is never
imputed or presumed. Toussaint v. Commissioner, 743 F.2d 309,
312 (5th Cir. 1984), affg. T.C. Memo. 1984-25; Beaver v.
Commissioner, 55 T.C. 85, 92 (1970). Petitioners' entire course
of conduct can be indicative of fraud. Stone v. Commissioner, 56
T.C. 213, 224 (1971); Otsuki v. Commissioner, supra at 105-106.
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