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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.
The text of these provisions as enacted is identical to the
text of these provisions as reported by the Senate Finance
Committee.
The Senate Finance Committee’s technical explanation of
these fraud provisions, S. Rept. 83-1622, at 591-592 (1954), is
as follows:
Section 6653. Failure to pay tax
For all taxes for which returns are required, this
section prescribes additions to the tax, corresponding
to those of existing law relating to the income tax,
for underpayments of tax resulting from fraud (50
percent of the underpayment). Existing law imposes a
50 percent addition in the case of fraud applicable to
all taxes, but, in the case of taxes other than income,
estate, and gift, that addition is based on the total
amount of tax imposed. This section further provides
that if the 50 percent penalty resulting from the fraud
is assessed, the addition to tax under section 6651 for
failure to file a return will not be assessed with
respect to the same underpayment. Another change
provided in this section is the substitution, for the
penalty provided in existing law of an amount equal to
the amount of any stamp tax evaded or not paid, of an
addition to the tax of 50 percent of the total amount
of the underpayment of such tax.
To the same effect is the House Ways and Means Committee’s
report. H. Rept. 83-1337, at A419 (1954).
Thus, it is clear that in 1954 the Congress intended to
consolidate and revise many of the 1939 Code fraud provisions.
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