- 15 -
of $1,138,436 and a Federal income tax deficiency of $459,500 for
1996.
D. Addition to Tax Under Section 6651(f)
Respondent determined that petitioner is liable for an
addition to tax under section 6651(f) of $344,625 for fraudulent
failure to file a return in 1996. Petitioner argues that
respondent has not met his burden of proof under Rule 142(b) and
section 7454(a).
Section 6651(f) imposes an addition to tax of up to 75
percent of the amount of tax required to be shown on the return
where the failure to file a Federal income tax return is due to
fraud. The Commissioner has the burden of proving fraud by clear
and convincing evidence. Sec. 7454(a); Rule 142(b); Clayton v.
Commissioner, 102 T.C. 632, 646, 652-653 (1994). For this
purpose, we consider the same factors under section 6651(f) that
are considered in imposing the fraud penalty under section 6663
and former section 6653(b). Clayton v. Commissioner, supra at
653.
Fraud is an intentional wrongdoing designed to evade tax
known or believed to be owing. Edelson v. Commissioner, 829 F.2d
828, 833 (9th Cir. 1987), affg. T.C. Memo. 1986-223; Bradford v.
Commissioner, 796 F.2d 303, 307 (9th Cir. 1986), affg. T.C. Memo.
1984-601. The existence of fraud is a question of fact to be
resolved upon consideration of the entire record. DiLeo v.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011