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SEC. 6653(b). Fraud.--
(1) In general.--If any part of any underpayment
* * * of tax required to be shown on a return is due to
fraud, there shall be added to the tax an amount equal
to the sum of--
(A) 75 percent of the portion of the
underpayment which is attributable to fraud, and
(B) an amount equal to 50 percent of the
interest payable under section 6601 with respect
to such portion for the period beginning on the
last day prescribed by law for payment of such
underpayment (determined without regard to any
extension) and ending on the date of the
assessment of the tax or, if earlier, the date of
the payment of the tax.
(2) Determination of portion attributable to
fraud.--If the Secretary establishes that any portion
of an underpayment is attributable to fraud, the entire
underpayment shall be treated as attributable to fraud,
except with respect to any portion of the underpayment
which the taxpayer established is not attributable to
fraud.
Section 6653(b)(1) and (2), in effect for 1988, provided:
SEC. 6653(b). Fraud.--
(1) In general.--If any part of any underpayment
* * * of tax required to be shown on a return is due to
fraud, there shall be added to the tax an amount equal
to 75 percent of the portion of the underpayment which
is attributable to fraud.
(2) Determination of portion attributable to
fraud.--If the Secretary establishes that any portion
of an underpayment is attributable to fraud, the entire
underpayment shall be treated as attributable to fraud,
except with respect to any portion of the underpayment
which the taxpayer established is not attributable to
fraud.
Respondent has the burden of proof, sec. 7454(a); Rule 142(b),
and he must show by clear and convincing evidence: (1)
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