- 34 -
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). With
respect to the increased deficiencies asserted by respondent in
her amended answer, respondent bears the burden of proof. Rule
142(a); Achiro v. Commissioner, 77 T.C. 881, 889-890 (1981).
With respect to the additions to tax for fraud under section
6653(b)(1) and (2), respondent bears the burden of proving fraud
by clear and convincing evidence. Rule 142(b). In order to
establish petitioner's liability for fraud under section
6653(b)(1), respondent bears the burden of proving by clear and
convincing evidence that: (1) An underpayment of tax exists for
each of the years in issue, and (2) some portion of the
underpayment is due to fraud. Sec. 7454(a); Rule 142(b);
Petzoldt v. Commissioner, 92 T.C. 661, 698-699 (1989); Hebrank v.
Commissioner, 81 T.C. 640, 642 (1983). To meet this burden,
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). For purposes of section
6653(b)(2), respondent must also prove the portion of the
underpayment attributable to fraud. Sec. 6653(b)(2); DiLeo v.
Commissioner, 96 T.C. 858, 873 (1991), affd. 959 F.2d 16 (2d Cir.
1992).
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