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A. Underpayments of Tax
For purposes of the fraud addition to tax, the term
"underpayment" means a "deficiency", as defined in section 6211,
except that the tax shown on the tax return is taken into account
only if that tax return was filed on or before the last day
prescribed for filing that tax return, determined with regard to
any extension of time for that filing. Sec. 6653(c)(1). In the
instant case, each of petitioners' 1980, 1981, and 1982 tax
returns was filed after the extended due dates, and thus the tax
shown on each of these returns is not taken into account in
determining the existence or amount of an underpayment. Secs.
6653(c)(1) and 6211(a)(1)(A).
On their late-filed tax returns, petitioners reported tax
liabilities for each of the years 1980, 1981, and 1982. These
admissions (Fed. R. Evid. 801(d)(2)(A)) have not been effectively
disputed by Robert. In these circumstances, we conclude that
respondent has thereby carried the burden of proving by clear and
convincing evidence that petitioners have an underpayment of tax
for each of the years in issue. See, e.g., Bank of the West v.
Commissioner, 93 T.C. 462, 468 (1989), and cases cited therein.
However, we examine into additional sources of underpayments for
each of these years in order to assist in determining whether any
parts of these underpayments are due to Robert's fraud.
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