Leonard Ray Blanton and Betty Blanton - Page 16

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            it.  Jack Ham clearly compensated petitioner for his efforts                                
            when, through his nephew, he paid Commerce Bank $15,000 to                                  
            partially extinguish petitioner's outstanding debt.  Moreover, at                           
            trial Bert Ham testified that he paid petitioner the 15,000 as a                            
            finder's fee on behalf of his uncle, who owed petitioner the                                
                  We hold that petitioner received a $15,000 finder's fee in                            
            Issue 2. Whether Petitioner Is Liable for the Section 6653(b)                               
            Fraud Addition to Tax                                                                       
                  Under section 6653(b) respondent has the burden of proving                            
            by clear and convincing evidence that there is an underpayment of                           
            tax and that some part of the underpayment was due to fraud.  See                           
            sec. 7454(a); Rule 142(b).  Respondent must show that petitioner                            
            intended to evade taxes known to be owing by conduct intended to                            
            conceal, mislead, or otherwise prevent the collection of such                               
            taxes.  Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983).                                  
                  In the instant case, petitioner has already been                                      
            collaterally estopped from denying that he received $23,334.50                              
            from Jack Ham in violation of the Hobbs Act.  Moreover, as                                  
            discussed, supra pp.12-15, we found that petitioner received a                              
            $15,000 finder's fee in 1978 from Jack Ham for assisting him in                             
            procuring the $2.5 million construction loan through Commerce                               
            Bank.  Finally, petitioner's amended return admits receipt of the                           

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