- 11 - Accordingly, the initial and principal question we consider is whether “any portion of * * * [the underpayments] is attributable to fraud”. Sec. 6663(b). I. Whether Petitioner Filed Fraudulent 1992, 1993, or 1994 Income Tax Returns For purposes of defining fraud, it is important to note that the definitions of fraud in sections 6663 and 6501 have been held to be interchangeable. Rhone-Poulenc Surfactants v. Commissioner, 114 T.C. 533, 548 (2000) (and cases cited therein); Murphy v. Commissioner, T.C. Memo. 1995-76. Fraud is an intentional wrongdoing on the part of the taxpayer with the specific purpose to evade a tax believed to be owing. McGee v. Commissioner, 61 T.C. 249, 256 (1973), affd. 519 F.2d 1121 (5th Cir. 1975); Terrell Equip. Co. v. Commissioner, T.C. Memo. 2002- 58. The Commissioner bears the burden of proving fraud by clear and convincing evidence. Sec. 7454(a); Rule 142(b); Zell v. Commissioner, 763 F.2d 1139, 1142-1143 (10th Cir. 1985), affg. T.C. Memo. 1984-152; Terrell Equip. Co. v. Commissioner, supra. To satisfy his burden, the Commissioner must show that (1) an underpayment exists; and (2) the taxpayer intended to evade taxes known to be owing by conduct intended to conceal, mislead, or otherwise prevent the collection of taxes. Parks v. Commissioner, 94 T.C. 654 692 (1970). The existence of fraud is a question of fact to be resolved from the entire record. DiLeo v. Commissioner, 96 T.C. 858, 874 (1991), affd. 959 F.2d 16 (2dPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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