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to fraud, except with respect to any portion of the underpayment
which the taxpayer establishes (by a preponderance of the
evidence) is not attributable to fraud." Sec. 6663(b).
The burden that respondent bears in proving fraud under
section 6501(c)(1) is the same burden that he bears in
establishing fraud for purposes of the section 6663(a) penalty.
Ruidoso Racing Association, Inc. v. Commissioner, 476 F.2d 502,
507 (10th Cir. 1973), affg. in part and remanding in part T.C.
Memo. 1971-194; DeBrouse v. Commissioner, T.C. Memo. 1988-119,
affd. 878 F.2d 379 (4th Cir. 1989). Since respondent has met his
burden for purposes of section 6501(c)(1), we hold that
respondent has established that a portion of petitioners'
underpayment is due to fraud for purposes of section 6663(a). We
further hold that petitioners have not presented credible
evidence that any portion of their underpayment was not due to
fraud. Accordingly, we sustain respondent's determination for
additions to tax and penalties imposed by sections 6653(b) and
6663(a).
III. Additions to Tax Under Sec. 6651
Respondent determined that petitioner AJF was liable for the
additions to tax imposed by section 6651(a). Section 6651(a)
imposes an addition to tax for failing to file a timely income
tax return, unless such failure to file is due to reasonable
cause and not due to willful neglect. The addition to tax is 5
percent of the amount required to be reported on the return for
each month or fraction thereof during which such failure to file
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