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respondent’s determinations with respect to the unreported income
received by petitioner with respect to Pieces of Eight. We
accordingly sustain respondent’s determinations of petitioner’s
liability for self-employment tax.
Sections 6653(b) and 6651(f) Additions to Tax
Respondent determined that petitioner is liable for the
addition to tax for fraud provided by section 6653(b)(1)(A) and
(B) for 1987 and section 6653(b)(1) for 1988. Respondent also
determined that petitioner is liable for the addition to tax for
fraudulent failure to file a return provided by section 6651(f)
for 1989.8 In deciding whether a failure to file is fraudulent,
we consider the same elements as are considered in imposing the
addition to tax for fraud provided by former section 6653(b) and
present section 6663. Clayton v. Commissioner, 102 T.C. at 653.
Accordingly, we have consolidated our discussion of respondent’s
fraud determinations.
8
Sec. 6664(b) provides that, for tax returns the due date for
which (determined without regard to extensions) is after Dec. 31,
1989, neither the negligence penalty provided by sec. 6662 nor
the fraud penalty provided by sec. 6663(a) applies where a tax
return has not been filed. Clayton v. Commissioner, 102 T.C.
632, 652 (1994). Sec. 6651(f), however, provides that, where a
failure to file a return is fraudulent, the addition to tax
imposed by section 6651(a) is increased to 15 percent of the
amount required to be shown as tax for each month the failure
continues, up to a maximum of 75 percent of the amount.
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