Paul L. Tregre, Jr. - Page 13

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          respondent's assessment and collection of the taxes at issue.               
          Petitioner simply does not address the components of the                    
          underlying deficiencies.  Accordingly, respondent is sustained on           
          this issue.                                                                 
          Additions to Tax for Fraud                                                  
               Respondent bears the burden of proving fraud by clear and              
          convincing evidence.  Sec. 7454(a); Rule 142(b).  The burden that           
          respondent bears in proving fraud under section 6653(b) or                  
          section 6501(c)(1) is one and the same.  Ruidoso Racing                     
          Association, Inc. v. Commissioner, 476 F.2d 502, 505, 507 (10th             
          Cir. 1973), affg. in part and revg. in part T.C. Memo. 1971-194.            
          Respondent must establish that petitioner underpaid his taxes for           
          each taxable year at issue and that some part of that                       
          underpayment was due to petitioner's intent to conceal, mislead,            
          or otherwise prevent the collection of such taxes.  Parks v.                
          Commissioner, 94 T.C. 654, 660-661 (1990); Hebrank v.                       
          Commissioner, 81 T.C. 640, 642 (1983).  For the reasons set forth           
          below, we find that respondent has met her burden.                          
               The issue of fraud presents a factual question which must be           
          decided on the basis of an examination of all the evidence in the           
          record.  Mensik v. Commissioner, 328 F.2d 147 (7th Cir. 1964),              
          affg. 37 T.C. 703 (1962); Stone v. Commissioner, 56 T.C. 213, 224           
          (1971); Stratton v. Commissioner, 54 T.C. 255, 284 (1970).  Fraud           
          is never presumed; it must be established by some independent               






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