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specifies that, if any portion of the underpayment is
attributable to fraud, the entire underpayment is treated as
attributable thereto, except and to the extent that the taxpayer
establishes some part is not due to fraud.
Respondent bears the burden of proving the applicability of
the civil fraud penalty by clear and convincing evidence. Sec.
7454(a); Rule 142(b). To sustain this burden, respondent must
establish by this level of proof both (1) that there was an
underpayment of tax for the taxable year in issue and (2) that at
least some portion of such underpayment was due to fraud. DiLeo
v. Commissioner, 96 T.C. 858, 873 (1991), affd. 959 F.2d 16 (2d
Cir. 1992); Petzoldt v. Commissioner, supra at 699. Again, it is
clear that deemed admissions are sufficient to satisfy
respondent’s burden of proving fraud. Marshall v. Commissioner,
supra at 272-273; Doncaster v. Commissioner, 77 T.C. 334, 337-338
(1981).
Here, Ms. Kaufman is deemed to have admitted that she
fraudulently and with intent to evade taxes omitted from her
returns $33,330.47, $57,095.06, and $76,574.76 of taxable income
for 1993, 1994, and 1995, respectively. She further is deemed to
have admitted that the foregoing omissions of income resulted in
understatements of Federal income tax liabilities of $6,546,
$11,577, and $18,226 for the respective 1993 through 1995 years,
and that such understatements were fraudulent with intent to
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