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1989, 1990, 1991, and 1992. Each section imposes an addition to
tax equal to 75 percent of the portion of an underpayment that is
attributable to fraud. Because these provisions are analyzed
similarly as to the determination of fraudulent intent, we
consolidate our discussion of respondent’s fraud determinations.
See Clayton v. Commissioner, 102 T.C. 632, 653 (1994).
Respondent has the burden of proving by clear and convincing
evidence that an underpayment exists for the years in issue and
that some portion of the underpayment is due to fraud. See sec.
7454(a); Rule 142(b); Niedringhaus v. Commissioner, 99 T.C. 202,
210 (1992). Consequently, respondent must establish: (1)
Petitioner has underpaid his taxes for each year; and (2) some
part of the underpayment is due to fraud. See DiLeo v.
Commissioner, 96 T.C. 858, 873 (1991), affd. 959 F.2d 16 (2d Cir.
1992). Fraud is the intentional wrongdoing on the part of a
taxpayer to evade a tax believed to be owing. See Petzoldt v.
Commissioner, 92 T.C. 661, 698 (1989). Where fraud is determined
for each of several years, respondent’s burden applies separately
34(...continued)
regard to any extension of time for filing),
unless it is shown that such failure is due to
reasonable cause and not due to willful neglect,
there shall be added to the amount required to be
shown as tax on such return 5 percent of the
amount of such tax if the failure is for not more
than 1 month, with an additional 5 percent for
each additional month or fraction thereof during
which such failure continues, not exceeding 25
percent in the aggregate;
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