-22-
evidence, viewed in the light most favorable to petitioner, shows
that petitioner substantially underpaid his tax for each of the
years 1989-92.
Finally, petitioner's pleadings and brief admit that
petitioner owed taxes for each of the years 1989-92.
Nevertheless, no payments or credits were made to petitioner's
income tax account for any of the years 1989-92, prior to (or on)
the due dates for the returns for those years.
On the basis of these facts and the rest of the record, we
hold that respondent has clearly and convincingly proved: (1)
There was a substantial underpayment in petitioner's tax for each
of the years 1989-92; and (2) there was a substantial "amount
required to be shown as tax" (within the meaning of section
6651(a)(1) and (b)(1)) on petitioner's return for each of those
years.
B. Were The Underpayments Due to Fraud--Fraudulent Intent
To prove fraud for any of the years 1989-92, respondent must
also prove by clear and convincing evidence that some portion of
the underpayment in petitioner's tax for that year was due to
fraud. Respondent is not required to prove the precise amount of
5(...continued)
Stipulated Additional Underpaid Taxes as
Net Income Deductions Estimated by Mr. Sager
Year
1989 $55,812 -- $17,438
1990 185,972 $10,000 23,577
1991 205,270 25,000 23,456
1992 131,415 40,000 6,014
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011