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Based on our review of the record in this case, respondent
has persuaded us by clear and convincing evidence of petitioner's
fraudulent intent with respect to the underpayment for each of
the years 1984 through 1988 that is attributable to his wage
income. Accordingly, we sustain respondent's determinations (1)
for each of the years 1984 and 1985 (a) under section 6653(b)(1)
and (b) under section 6653(b)(2) to the extent based on the
previously assessed underpayment for each such year that is
attributable to petitioner's wage income;3 (2) for each of the
years 1986 and 1987 under section 6653(b)(1)(A) and (B); and (3)
for 1988 under section 6653(b)(1).
Although respondent has not requested a penalty under
section 6673, this Court is authorized to impose such a penalty
in cases where the taxpayer's position is frivolous or groundless
or the proceeding was instituted or maintained primarily for
delay. Sec. 6673(a)(1)(A) and (B); Coulter v. Commissioner, 82
T.C. 580, 584-586 (1984). Under the circumstances presented
here, we conclude that petitioner's positions in this case that,
3 The notice of deficiency for petitioner's taxable years 1984
and 1985 determined, inter alia, that petitioner is liable for
each such year for the addition to tax under sec. 6653(b)(2) with
respect to a previously assessed underpayment that is attribut-
able to not only petitioner's wage income for 1984 and 1985 in
the amounts of $52,500 and $57,300, respectively, but also
capital gain and interest income of $967 and $1,600, respec-
tively. Respondent has failed to prove the requisite fraudulent
intent with respect to such assessed underpayment for each of the
years 1984 and 1985 that is attributable to such capital gain and
interest income. See sec. 6653(b)(2).
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