- 26 -
of action consciously undertaken both to avoid taxation and to
avoid detection.
Respondent has met his burden of showing by clear and
convincing evidence that petitioner’s understatements of income
were due to fraud. Petitioner offered no credible evidence to
show that any portion of the understatements was not due to
fraud. We sustain respondent’s determinations that petitioner is
liable for the civil fraud addition to tax for 1988 and fraud
penalties for 1989 and 1990.
To reflect the foregoing and respondent’s concessions,
Decision will be entered
under Rule 155.
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Last modified: May 25, 2011