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6651(f), a fraud addition is imposed if any failure to file a
return is fraudulent.
1. Section 6653(b)(1) Addition for Underpayment of Tax
for 1988
To impose liability under section 6653(b)(1), respondent
must first prove that there has been an underpayment of taxes for
the year in issue. Lee v. United States, 466 F.2d 11, 16-17 (5th
Cir. 1972); Plunkett v. Commissioner, 465 F.2d 299, 303 (7th Cir.
1972), affg. T.C. Memo. 1970-274. Section 6653(c)(1) defines
"underpayment" as a deficiency as defined in section 6211, except
that for this purpose section 6653(c)(1) provides that "the tax
shown on a return referred to in section 6211(a)(1)(A) shall be
taken into account only if such return was filed on or before the
last day prescribed for the filing of such return".
Because petitioners did not file their 1988 Federal income
tax return until November 6, 1992, there is deemed to be an
underpayment of tax for 1988 equal to the amount reported as due
on their delinquent return. In this situation, "a taxpayer will
automatically create an 'underpayment' in the amount of the
correct tax simply because he or she files an untimely return."
Emmons v. Commissioner, 92 T.C. 342, 349 (1989), affd. 898 F.2d
50 (5th Cir. 1990).
2. Fraudulent Intent
Under sections 6653(b)(1) and 6651(f), respondent must show
that petitioners intended to conceal, mislead, or otherwise
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