- 8 -
for a deficiency in the amount of $14,611 for 1986.
Issue 2. Additions to Tax Under Section 6653(b)(1)
Respondent seeks judgment against petitioner for additions
to tax for fraud. Respondent calculated the fraud additions on
$14,611, the full amount of the underpayment.
Section 6653(b) provides:
(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 * * *.
(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.
In order to carry the burden of proof on the issue of fraud,
respondent must show that (1) an underpayment of tax exists and
(2) some portion of the underpayment is due to fraud. Petzoldt
v. Commissioner, 92 T.C. 661, 699 (1989). Respondent argues that
collateral estoppel applies to meet his burden. In support,
respondent submitted petitioner’s Form 1040A, the notice of
deficiency, the judgment of the U.S. District Court, the
Information, and the plea agreement signed by petitioner.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011