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Respondent's fraud determinations were made in relation to
three separate statutory regimes. For the taxable years 1986 and
1987, the addition to tax for fraud is equal to 75 percent of the
portion of any underpayment attributable to fraud, plus 50
percent of the interest due on that portion. See sec.
6653(b)(1)(A) and (B). If respondent establishes that any
portion of the underpayment for 1986 or 1987 is attributable to
fraud, then the entire underpayment is to be treated as
attributable to fraud, except with respect to any portion of the
underpayment that petitioner establishes is not attributable to
fraud. See sec. 6653(b)(2).
For 1988 the fraud addition to tax was changed by the
enactment of the Technical and Miscellaneous Revenue Act of 1988,
Pub. L. 100-647, section 1015(b)(2)(B), 102 Stat. 3369.5 The
5 The relevant provision provided:
SEC. 6653(b) Fraud.--
(1) In General.--If any part of any
underpayment (as defined in subsection (c))
of the tax required to be shown on a return
is due to fraud, there shall be added to the
tax an amount equal to 75 percent of the
portion of the underpayment which is
attributable to fraud.
(2) * * * If the Secretary establishes
that any portion of an underpayment is
attributable to fraud, the entire
underpayment shall be treated as attributable
to fraud, except with respect to any portion
of the underpayment which the taxpayer
(continued...)
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