-40-
shoe boxes. The return preparer required petitioner to make
schedules, and, ultimately, the returns prepared for petitioner
were based on the unaudited and unverified information presented
by petitioner.
Discussion
Respondent determined that petitioner is liable for an
addition to tax or penalty for fraud in each of the taxable years
in issue. For 1985, section 6653(b)(1) provides for a 50-percent
addition to tax if any part of the underpayment is due to fraud,
and section 6653(b)(2) provides for an addition equal to 50
percent of the interest payable on the portion of the
underpayment attributable to fraud. For 1986 and 1987, section
6653(b)(1)(A) provides for a 75-percent addition to tax on the
portion of the underpayment attributable to fraud, and section
6653(b)(1)(B) provides for an addition equal to 50 percent of the
interest payable on such portion. Finally, for 1988 and 1989,
sections 6653(b)(1) and 6663(a), respectively, provide for a 75-
percent addition to tax or penalty on the portion of the
underpayment that is attributable to fraud. Fraud is defined as
an intentional wrongdoing designed to evade tax believed to be
owing. Powell v. Granquist, 252 F.2d 56 (9th Cir. 1958); Miller
v. Commissioner, 94 T.C. 316, 332 (1990).
Respondent has the burden of proving by clear and convincing
evidence that an underpayment exists for each of the years in
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