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Fraud and Other Additions to Tax
For 1984 and 1985, if any portion of a tax underpayment is
attributable to fraud, the addition to tax for fraud under
section 6653(b)(1) equals 50 percent of the total underpayment of
tax, and increased interest under section 6653(b)(2) equals 50
percent of interest payable under section 6601 but only with
respect to that portion of the underpayment that is attributable
to fraud. Respondent has the burden of proving what portion of
the underpayment is attributable to fraud.
For 1986, 1987, and 1988, the addition to tax for fraud
under section 6653(b)(1) equals 75 percent of that portion of a
tax underpayment that is attributable to fraud, and for 1986 and
1987, increased interest under section 6653(b)(1)(B) equals 50
percent of interest payable under section 6601 with respect to
that portion of a tax underpayment that is attributable to fraud.
For 1986, 1987, and 1988, where respondent proves that any
part of a taxpayer's underpayment of income tax is due to fraud,
fraud is presumed with respect to the entire underpayment unless
the taxpayer proves otherwise by a preponderance of the evidence.
Sec. 6653(b)(2).
For 1989, if a taxpayer fraudulently fails to file a tax
return, the fraudulent failure to file addition to tax under
section 6651(f) provides for an addition to tax equal to
15 percent of the amount required to be shown as tax on the
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