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this burden for a year, respondent must prove two elements, as
follows: (1) That petitioner has an underpayment of tax for that
year, and (2) that some part of that underpayment is due to
fraud. Sec. 7454(a);12 Rule 142(b); e.g., Carter v. Campbell,
11(...continued)
attributable to fraud, and
(B) for the period beginning on the last day
prescribed by law for payment of such underpayment
(determined without regard to any extension) and
ending on the date of the assessment of the tax
(or, if earlier, the date of the payment of the
tax).
For 1980 and 1981, the fraud addition to tax is provided for
in sec. 6653(b), the first sentence of which is the same as the
above-quoted sec. 6653(b)(1).
Par. (2) was added by sec. 325(a) of the Tax Equity and
Fiscal Responsibility Act of 1982, Pub. L. 97-248, 96 Stat. 324,
616, and was effective for taxes the payment of which (determined
without regard to any extension) is due after Sept. 3, 1982. In
the instant case, par. (2) is applicable to the additions to tax
determined against petitioners for 1982.
The later amendments of this provision by sec. 1503 of the
Tax Reform Act of 1986 (TRA 86--Pub. L. 99-514, 100 Stat. 2085,
2742), by sec. 1015(b)(2)(B) of the Technical and Miscellaneous
Revenue Act of 1988 (Pub. L. 100-647, 102 Stat. 3342, 3569), and
by sec. 7721(a) of the Omnibus Budget Reconciliation Act of 1989
(OBRA 89--Pub. L. 101-239, 103 Stat. 2106, 2395) do not affect
the instant case.
As a result of OBRA 89, the revised fraud addition to tax
now appears in secs. 6663 and 6651(f).
12 SEC. 7454. BURDEN OF PROOF IN FRAUD, FOUNDATION
MANAGER, AND TRANSFEREE CASES.
(a) Fraud.--In any proceeding involving the issue
whether the petitioner has been guilty of fraud with intent
to evade tax, the burden of proof in respect of such issue
(continued...)
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