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2. Section 6653(b)(2)
Under section 6653(b)(2), a separate addition to tax (equal
to 50 percent of the interest payable under section 6601) is
determined with respect to "the portion" of the underpayment
attributable to fraud. Respondent bears the burden of proving
the specific portion of the underpayment of tax that is
attributable to fraud for purposes of applying the section
6653(b)(2) addition to tax. See DiLeo v. Commissioner, 96 T.C.
at 873; Franklin v. Commissioner, T.C. Memo. 1993-184. In all
other respects, respondent's burdens are identical under section
6653(b)(1) and (2).
Respondent asserts that the entire underpayments for both
1983 and 1985 are due to fraud. For the above stated reasons, we
find that respondent has clearly and convincingly established
that the entire underpayments are due to fraud. As petitioner's
unreported income from the receipt of the Wedtech shares is the
sole source of the underpayment for 1983, the entire underpayment
for 1983 is due to fraud. Similarly for 1985, as the unreported
gain from the sale of 25,000 shares is the sole source of
petitioner's underpayment in 1985, the entire underpayment is due
to fraud. Accordingly, we sustain respondent's determinations of
additions to tax under section 6653(b)(2) for 1983 and 1985 on
the total underpayments for those years.
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