- 10 -
The total deficiency determined by respondent for all 5
years is $24,535. Petitioner has paid $15,143.24 toward these
tax liabilities. Respondent acknowledges that petitioner paid
this amount. Therefore, petitioner is liable for the payment of
an additional $9,391.76 in income taxes, plus any penalties which
may apply. See, e.g., Hickman v. Commissioner, supra.
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. 6663(b).3
Respondent bears the burden of proving fraud by clear and
convincing evidence. See sec. 7454(a); Rule 142(b); Sadler v.
Commissioner, 113 T.C. 99, 102 (1999). To satisfy this burden,
respondent must show that: (1) An underpayment exists; and (2)
petitioner intended to evade taxes known to be owing by conduct
intended to conceal, mislead, or otherwise prevent the collection
of taxes. See Parks v. Commissioner, 94 T.C. 654, 660-661
(1990). We have found, and petitioner admits, that he underpaid
his taxes for the years in issue in the amounts determined in the
notice of deficiency.
3In the case of a joint return, the fraud penalty does not
apply to a spouse unless some portion of the underpayment is due
to the fraud of such spouse. See sec. 6663(c).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011