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their voluntary payments against any deficiencies and additions
to tax determined by this Court to be due for 1987 and 1988.
Issue 2. Unreported Income
Petitioner has the burden of proving that he did not
understate his gross income from his medical practice by $175,285
for 1987 and $191,979 for 1988, as determined by respondent.
Rule 142(a); Welch v. Helvering, 290 U.S. 111 (1933). He failed
to carry that burden.
Paragraph 16 of the first stipulation of facts filed with
the Court on the first day of trial states as follows:
The Schedule C gross income was understated from
petitioner Dwight McKenna's medical practice for the taxable
years 1987 and 1988 in the respective amounts of $175,285.00
and $191,979.00. The correct gross income for the medical
practice Schedules C was $577,285.00 for 1987 and
$442,262.00 for 1988.
Moreover, the testimonial and documentary evidence, contrary to
petitioner's assertion, fully supports the stipulation with
respect to the substantial amounts of unreported income for both
years.
Issue 3. Additions to Tax for Fraud
Respondent determined that petitioner is liable for the
fraud addition to tax under section 6653(b)(1)(A) and (B) for
1987, and under section 6653(b)(1) for 1988. Section
6653(b)(1)(A) and section 6653(b)(1) both provide that if any
part of any underpayment of tax required to be shown on a return
is due to fraud, then an amount equal to 75 percent of the
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