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preparing Mr. Davis' tax returns for 1984, 1985, and 1987, Mr.
Stimmel worked with Jean Davis and Ms. Blair. Mr. Stimmel had
full and unrestricted access to all of Mr. Davis' books and
records.
Mr. Stimmel determined the attachments to include in the
1985 return concerning Mr. Davis' charitable donations. He
determined that it was not necessary to attach the entire 1985
appraisal to the 1985 return.
During the years in issue, Mr. Davis relied on professional
accountants, Mr. Fenn and Mr. Stimmel, to prepare his Federal tax
returns.
OPINION
I. Addition to Tax for Fraud
The addition to tax in the case of fraud is a civil sanction
provided primarily as a safeguard for the protection of the
revenue and to reimburse the Government for the heavy expense of
investigation and the loss resulting from a taxpayer's fraud.
See Helvering v. Mitchell, 303 U.S. 391, 401 (1938). Fraud is
intentional wrongdoing on the part of the taxpayer with the
specific purpose to evade a tax believed to be owing. See McGee
v. Commissioner, 61 T.C. 249, 256 (1973), affd. 519 F.2d 1121
(5th Cir. 1975).
The Commissioner has the burden of proving fraud by clear
and convincing evidence. See sec. 7454(a); Rule 142(b). To
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