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Respondent determined that petitioners underpaid their 1989
income tax by $29. The underpayment was attributable to the
overstated short-term capital loss carryover reported and
deducted on their 1989 tax return. Petitioners did not present
any evidence at trial and did not argue in their brief that
respondent's determination of the $29 deficiency is incorrect.
We therefore sustain respondent's determination of this
deficiency. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 114
(1933); Rapco, Inc. v. Commissioner, 85 F.3d 950, 954 (2d Cir.
1996), affg. T.C. Memo. 1995-128.
C. 1988 and 1989 Additions to Tax for Fraud
Respondent argues that petitioners are liable for the
additions to tax for fraud under section 6653(b)(1) for 1988 and
section 6651(f) for 1989. For returns the due date for which is
after December 31, 1988, determined without regard to extensions,
but before December 31, 1989, section 6653(b)(1) imposes an
addition to tax equal to 75 percent of the portion of an
underpayment that is due to fraud. In the case of returns the
due date for which is after December 31, 1989, determined without
regard to extensions, section 6651(f) imposes an addition to tax
where a failure to file a return is fraudulent. Because both
provisions are analyzed similarly as to the determination of
fraudulent intent, we consolidate our discussion of the fraud
determinations. Clayton v. Commissioner, 102 T.C. 632, 653
(1994).
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