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to tax equal to 50 percent of the interest payable under section
6601, determined on the portion of the underpayment attributable
to fraud. For 1986 and 1987, section 6653(b)(1)(A) imposes an
addition to tax equal to 75 percent of the portion of an
underpayment of tax attributable to fraud if any part of the
underpayment was due to fraud, and section 6653(b)(1)(B) imposes
a separate addition to tax equal to 50 percent of the interest
payable under section 6601, determined on the portion of the
underpayment attributable to fraud. For 1988, section 6653(b)(1)
imposes an addition to tax equal to 75 percent of the portion of
the underpayment that is attributable to fraud if any part of any
underpayment of a tax required to be shown on a return was due to
fraud. For 1989 and 1990, section 6663(a) imposes a penalty for
fraud equal to 75 percent of the portion of an underpayment that
is attributable to fraud. If any portion of an underpayment is
attributable to fraud, then the entire underpayment is treated as
due to fraud unless the taxpayer can establish that some portion
of the underpayment is not attributable to fraud. See sec.
6653(b)(2), as in effect for 1986, 1987, and 1988; sec. 6663(b),
as in effect for 1989 and 1990. The elements of fraud under
section 6663 are essentially the same as those considered under
section 6653(b). See, e.g., Rhone-Poulenc Surfactants &
Specialties, L.P. v. Commissioner, 114 T.C. 533, 548 (2000),
appeal dismissed and remanded 249 F.3d 175 (3d Cir. 2001).
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