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50 percent of the interest payable under section 6601
with respect to the portion of the underpayment which is
attributable to fraud. "Fraud" for these purposes is
defined as an intentional wrongdoing designed to evade
tax believed to be owing. See Powell v. Granquist, 252
F.2d 56 (9th Cir. 1958); Mitchell v. Commissioner, 118
F.2d 308 (5th Cir. 1941), revg. 40 B.T.A. 424 (1939);
Petzoldt v. Commissioner, supra at 698; Estate of Pittard
v. Commissioner, 69 T.C. 391 (1977).
Respondent bears the burden of proving fraud by clear
and convincing evidence. See sec. 7454(a); Rule 142(b);
Castillo v. Commissioner, 84 T.C. 405, 408 (1985); Stone
v. Commissioner, 56 T.C. 213, 220 (1971). To meet this
burden, respondent must show that an underpayment of tax
exists, and that petitioner intended to evade taxes known
to be owing by conduct intended to conceal, mislead, or
otherwise prevent the collection of such taxes. Stoltzfus
v. United States, 398 F.2d 1002, 1004 (3d Cir. 1968); see
Parks v. Commissioner, 94 T.C. 654, 660 (1990); Recklitis
v. Commissioner, 91 T.C. 874, 909 (1988); Castillo v.
Commissioner, supra at 408-409; Rowlee v. Commissioner,
80 T.C. 1111, 1123 (1983); Acker v. Commissioner, 26 T.C.
107, 112 (1956). Respondent need not establish that
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