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section 6653(b)(1) for 19874 and 1988, and section 6663 for 1989
and 1990. These sections impose an addition to tax or penalty
equal to 75 percent of the portion of the underpayment which is
attributable to fraud. However, if respondent proves that any
portion of the underpayment is attributable to fraud, the entire
underpayment shall be treated as attributable to fraud, unless
petitioner can establish by a preponderance of the evidence that
a portion is not attributable to fraud. Secs. 6653(b)(2),
6663(b).
Fraud is defined as an intentional wrongdoing designed to
evade tax believed to be owing. Edelson v. Commissioner, 829
F.2d 828, 833 (9th Cir. 1987), affg. T.C. Memo. 1986-223.
Respondent has the burden of proving fraud by clear and
convincing evidence. Rule 142(b). To satisfy this burden,
respondent must prove that petitioner intended to evade taxes
known to be owing by conduct intended to conceal, mislead, or
otherwise prevent the collection of taxes. Parks v.
Commissioner, 94 T.C. 654, 661 (1990).
The existence of fraud is a question of fact to be resolved
upon consideration of the entire record. DiLeo v. Commissioner,
96 T.C. 858, 874 (1991), affd. 959 F.2d 16 (2d Cir. 1992). Fraud
4 In addition, with respect to the taxable year 1987,
respondent has determined an addition to tax pursuant to sec.
6653(b)(1)(B) in an amount equal to 50 percent of the interest
due on the underpayment attributable to fraud.
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