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Massachusetts. On April 26, 1991, before the U.S. District Court
for the District of Massachusetts, petitioner pled guilty to
willfully failing to file, in violation of section 7203, his 1980
Federal income tax return. The charge relating to his 1979
return was dismissed. On June 24, 1991, petitioner was
convicted, sentenced to 6 months' imprisonment, and fined $5,000.
OPINION
I. Addition to Tax for Fraud
Respondent determined that petitioner, pursuant to section
6653(b), is liable for an addition to tax for fraud relating to
his 1980 tax year. Section 6653(b) provides that if any part of
an underpayment of tax required to be shown on a return is due to
fraud, there shall be added to the tax an amount equal to 50
percent of the underpayment.
Fraud is defined as an intentional wrongdoing designed to
evade tax. Powell v. Granquist, 252 F.2d 56, 60 (9th Cir. 1958);
Miller v. Commissioner, 94 T.C. 316, 332 (1990). Respondent
bears the burden of proving fraud by clear and convincing
evidence. Sec. 7454(a); Rule 142(b). To carry the burden of
proof, respondent must show for each year in issue that an
underpayment of tax exists and that some portion of the
underpayment is due to fraud. Petzoldt v. Commissioner, 92 T.C.
661, 699 (1989).
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