- 14 -
years 1981 and 1982. Consequently petitioner is liable for the
addition to tax under section 6653(b) for 1981, and he is liable
for the addition to tax under section 6653(b)(1) for 1982. The
only remaining issue that we must decide is the amount of the
understatement of tax in 1982 which is attributable to fraud for
purposes of section 6653(b)(2). We recognize that respondent has
the burden of proving fraud by clear and convincing evidence
whereas petitioner, as explained above, has the burden of showing
that he did not receive unreported income to overcome
respondent's determination of deficiencies. We find that
respondent has met her burden. The evidence clearly and
convincingly shows that petitioner had dominion and control over
the R&S and Pares Y Nones, S.A. accounts, that the amounts
deposited in those accounts by Landing constituted unreported
income to him, and that he received additional unreported income
as a result of the repairs on his home which Landing paid for.
The unreported income consisted of the bank deposit proceeds and
the renovations on petitioner's house. Consequently, the entire
amount of petitioner's unreported income for 1982 is attributable
to fraud and is subject to the provisions of section 6653(b)(2).
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