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Petitioner has underpaid his taxes for each year, and (2) at
least some part of the underpayment is due to fraud. DiLeo v.
Commissioner, 96 T.C. at 873; Hebrank v. Commissioner, 81 T.C.
640, 642 (1983).
With respect to the 1985 tax year, the 50-percent addition
to tax for fraud under section 6653(b)(1) is imposed on the total
underpayment, where any portion of the underpayment is
attributable to fraud. See H. Conf. Rept. 99-841 at II-780
(1986), 1986-4 C.B. 1, 780. With respect to the section
6653(b)(2) addition to tax for 1985, it is respondent’s burden to
establish, by clear and convincing evidence, the specific portion
of the underpayment attributable to fraud. Hughes v.
Commissioner, T.C. Memo. 1994-139.
With respect to the 1986, 1987, and 1988 tax years, once
respondent has shown by clear and convincing evidence an
underpayment of tax and that at least some portion of the
underpayment is attributable to fraud, the entire underpayment is
treated as attributable to fraud and subject to the section
6653(b)(1) addition to tax. Sec. 6653(b)(2); Kalo v.
Commissioner, T.C. Memo. 1996-482, affd. without published
opinion 149 F.3d 1183 (6th Cir. 1998). The normal presumption of
correctness then attaches to the Commissioner’s determination,
DiLeo v. Commissioner, supra at 873, and the taxpayer bears the
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