- 44 -
In her amendment to answer, respondent asserted that gross
receipts as reported by petitioner on the 1984 return should be
reduced by $480,800 rather than $1,933,600 as originally
determined by respondent. Petitioner presented no arguments or
facts to dispute this assertion. Upon a review of this record,
we are satisfied that respondent's claim in her amendment to
answer is correct. Therefore, we sustain respondent's adjustment
to petitioner's Schedule C income for 1984 in the amount of
$2,035,424 ($2,516,224 less $480,800).
4. Additions to Tax (Section 6653(b)(1) and (2))
Respondent determined that petitioner is liable for
additions to tax for fraud under section 6653(b)(1) and (2) for
1982, 1983, and 1984. As we previously indicated, respondent
bears the burden of proving by clear and convincing evidence that
there is an underpayment for each of the years in issue and that
some portion of the underpayment is due to fraud. Sec.
6653(b)(1).
(a) Section 6653(b)(1)
We first consider the additions to tax under section
6653(b)(1). The existence of fraud is a question of fact to be
resolved upon consideration of the entire record. Gajewski v.
Commissioner, 67 T.C. 181, 199 (1976), affd. without published
Page: Previous 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 NextLast modified: May 25, 2011