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For 1987, section 6653(b)(1)(A) imposes an addition to tax
if any part of an underpayment of tax required to be shown on a
return is due to fraud, in the amount of 75 percent of the
portion of the underpayment which is attributable to fraud.
Section 6653(b)(1)(B) imposes an addition to the tax in the
amount of 50 percent of the interest due with respect to the
portion of the underpayment which is attributable to fraud.
Section 6663(a), as applicable for 1990, provides that if any
part of an underpayment 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. Section 6651(f), as
applicable for 1989, imposes an addition to the tax for the
fraudulent failure to file an income tax return. The addition to
the tax is 15 percent initially and an additional 15 percent for
each portion of a month thereafter, up to a maximum of 75
percent. To determine whether petitioner’s failure to file his
return was fraudulent, we apply the same elements used when
considering the imposition of the addition to tax and the penalty
for fraud under section 6653(b)(1) and section 6663(a). See
Clayton v. Commissioner, 102 T.C. 632, 653 (1994).
Fraud is defined as an intentional wrongdoing designed to
evade tax believed to be owing. See Edelson v. Commissioner, 829
F.2d 828, 833 (9th Cir. 1987), affg. T.C. Memo. 1986-223.
Respondent bears the burden of proving fraud and must establish
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