- 25 -
underpayment which the taxpayer establishes is not attributable
to fraud.10 See secs. 6653(b)(2), 6663(b).
Where joint returns are filed, the fraud of one spouse is
not automatically attributed to the other; the other spouse is
not liable for fraud unless the Commissioner shows that some part
of the underpayment is due to the fraud of such other spouse.
See secs. 6653(b)(3), 6663(c).
The Commissioner meets his burden of proof if it is shown
that the taxpayer intended to evade taxes known to be owing by
conduct intended to conceal, mislead, or otherwise prevent the
collection of such taxes. See Hagaman v. Commissioner, 958 F.2d
684, 696 (6th Cir. 1992) (citing United States v. Walton, 909
F.2d 915, 926 (6th Cir. 1990)), affg. and remanding T.C. Memo.
1987-549; Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983). A
conviction for the willful attempt to evade or defeat income
taxes under section 7201 precludes a taxpayer in a subsequent
civil proceeding from denying that an underpayment in his income
tax for the taxable year of conviction was due to fraud. See
Gray v. Commissioner, 708 F.2d 243 (6th Cir. 1983), affg. T.C.
Memo. 1981-1; Plunkett v. Commissioner, 465 F.2d 299 (7th Cir.
10 Sec. 6663(b), applicable to petitioners’ 1989, 1990, and
1991 taxable years, clarifies that petitioners need only
establish by a preponderance of the evidence that some portion of
the underpayment is not attributable to fraud.
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011