Frederick E. Slater - Page 2

                                        - 2 -                                         
                                   Additions to Tax                                   
          Year      Deficiency     Sec. 6653(b)(1)1         Sec. 6661                 
          1985      $ 58,899            $ 73,4072           $14,725                   
          1986      82,667              103,0293            20,667                    
          1987      104,190             118,5594            25,848                    
          This matter is before the Court on the respondent's Motion for              
          Summary Judgment.  Unless otherwise indicated, all section                  
          references are to the Internal Revenue Code in effect for the               



          1  Sec. 6653(b) above refers to both sec. 6653(b)(1) and                    
          (b)(2), which was in effect in 1985, and to sec. 6653(b)(1)(A)              
          and (b)(1)(B), which was in effect in 1986 and 1987.                        
               Sec. 6653(b)(1) provided:                                              
               If any part of any underpayment (as defined in                         
               subsection (c)) of tax required to be shown on a return                
               is due to fraud, there shall be added to the tax an                    
               amount equal to 50 percent of the underpayment.                        
               Sec. 6653(b)(1)(A) provided:                                           
               If any part of any underpayment (as defined in                         
               subsection (c)) of tax required to be shown on a return                
               is due to fraud, there shall be added to the tax an                    
               amount equal to the sum of * * * (A) 75 percent of the                 
               portion of the underpayment which is attributable to                   
               fraud * * * .                                                          
          Both provisions require that 50 percent of the interest payable             
          under sec. 6601 is due with respect to that portion of the                  
          understatement attributable to fraud.  Secs. 6653(b)(2)(A),                 
          6653(b)(2).                                                                 

          2  Plus 50 percent of the interest due on $58,899                           
          3  Plus 50 percent of the interest due on $82,667.                          
          4  Plus 50 percent of the interest due on $103,392.                         




Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011