-40-
When respondent seeks to impose the additions to tax under
section 6653(b),24 respondent has the burden of proof. To carry
24 Sec. 6653(b) provides, in pertinent part, as follows:
SEC. 6653. FAILURE TO PAY TAX.
* * * * * * *
(b) Fraud.--
(1) In general.--If any part of any underpayment
(as defined in subsection (c)) 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.
(2) Additional amount for portion attributable to
fraud.--There shall be added to the tax (in addition to
the amount determined under paragraph (1)) an amount
equal to 50 percent of the interest payable under
section 6601--
(A) with respect to the portion of the
underpayment described in paragraph (1) which is
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.
(continued...)
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