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under section 6653(a)(1)(A) and (B).9 Section 6653(b)(1)(A)
imposes an addition to tax equal to 75 percent of the
underpayment attributable to fraud. Additionally, section
6653(b)(1)(B) imposes an addition to tax equal to 50 percent of
the interest due on an underpayment attributable to fraud.
Respondent has the burden of proving fraud by clear and
convincing evidence. Rule 142(b). To satisfy this burden,
respondent must prove that petitioner intended to evade taxes by
conduct intended to conceal, mislead, or otherwise prevent the
collection of taxes. Parks v. Commissioner, 94 T.C. 654, 661
(1990); Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983).
9 Respondent determined additions to tax for 1987 under sec.
6653(b)(1)(A) and (B), the version of sec. 6653(b) that applied
to petitioner’s 1987 return. See Tax Reform Act of 1986 (TRA),
Pub. L. 99-514, sec. 1503(a), 100 Stat. 2085, 2742. In the
answer, respondent incorrectly alleged that the fraud additions
for 1987 should have been asserted under sec. 6653(b)(1) and (2),
a prior version of sec. 6653(b). Similarly, in the answer,
respondent asserted alternate additions to tax for negligence for
1987 under sec. 6653(a)(1) and (2), a prior version of sec.
6653(a). The version of sec. 6653(a) applicable to taxable year
1987 is sec. 6653(a)(1)(A) and (B). TRA sec. 1503(a).
With respect to the fraud additions to tax, the deficiency
notice cited the version of sec. 6653(b) applicable to the year
in issue and properly informed petitioner of respondent’s
determination. Respondent’s assertion in the answer of a prior
version of sec. 6653(a) and (b) for the additions is an error in
form only and does not have a substantive effect on this case.
In any event, citation of a prior version of sec. 6653(a) and (b)
is immaterial to the outcome of the case because respondent bears
the burden on both the fraud and negligence additions to tax.
See Rule 142.
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