Estate of Emanuel Trompeter, Deceased, Robin Carol Trompeter Gonzalez and Janet Ilene Trompeter Polacheck, Co-Executors - Page 10

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          Reconciliation Act of 1989 (the 1989 Act), Pub. L. 101-239,                 
          103 Stat. 2106, 2395-2398.  Prior to the passage of the 1989 Act,           
          the fraud penalty (or addition to tax, as it was then known) was            
          contained in former section 6653(b) and (e).  This former section           
          provided:                                                                   
               SEC. 6653(b).  Fraud.--                                                
                         (1) In general.--If any part of any                          
                    underpayment * * * of tax required to be                          
                    shown on a return is due to fraud, there                          
                    shall be added to the tax an amount equal to                      
                    75 percent of the portion of the underpayment                     
                    which is attributable to fraud.                                   
                         *    *    *    *    *    *    *                              
               (e) Failure To Pay Stamp Tax.--Any person * * * who                    
               willfully fails to pay any tax imposed by this title                   
               which is payable by stamp, coupons, tickets, books, or                 
               other devices or methods prescribed by this title or by                
               regulations under authority of this title, or willfully                
               attempts in any manner to evade or defeat any such tax                 
               or the payment thereof, shall, in addition to other                    
               penalties provided by law, be liable to a penalty of 50                
               percent of the total amount of the underpayment of the                 
               tax.                                                                   
          Section 7721(a) of the 1989 Act amended former section 6653 to              
          read almost verbatim with former section 6653(e); i.e., section             
          6653 now applies only to a failure to pay tax by way of stamps,             
          coupons, tickets, books, or other devices or methods prescribed             
          by the Code or regulations thereunder.  Section 7721(a) of the              
          1989 Act also created section 6663(a) to impose the fraud penalty           
          on "tax required to be shown on a return".  Congress did not                
          intend for the 1989 Act, as it applied to the fraud and                     
          accuracy-related penalties, to create a new body of law that                



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