- 8 - resulting from the taxpayer's fraud.” Helvering v. Mitchell, 303 U.S. 391, 401 (1938). Fraud denotes intentional wrongdoing on the part of the taxpayer with the specific purpose of evading a tax known or believed to be owing. Petzoldt v. Commissioner, 92 T.C. 661, 698 (1989). Fraud is shown by proof that the taxpayer intended to conceal, mislead, or otherwise prevent the collection of his or her taxes and that there is an underpayment of tax. Spies v. United States, 317 U.S. 492, 499 (1943); Stoltzfus v. United States, 398 F.2d 1002, 1005 (3d Cir. 1968); Webb v. Commissioner, 394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo. 1966-81; Rowlee v. Commissioner, supra at 1123. Thus, in order to sustain his burden as to fraud, respondent must prove that: (1) Petitioner underpaid his taxes for the relevant years, and (2) some part of each underpayment was due to fraud.2 It is well settled in this Court that the Commissioner may establish fraud by relying upon matters deemed admitted under Rule 90. Marshall v. Commissioner, 85 T.C. 267 (1985); Morrison v. Commissioner, 81 T.C. 644, 651 (1983); Doncaster v. Commissioner, 77 T.C. 334, 336 (1981). The Commissioner may also establish fraud by relying on facts deemed to be stipulated under 2If respondent establishes that some part of the underpayment for a year is due to fraud, all of the underpayment is deemed attributable to fraud unless petitioner proves otherwise. See sec. 6653(b)(2), as in effect for 1986 through 1988; sec. 6663(b), as in effect for 1989.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011