This applies equally to monetary tax penalties. See Helvering, 303 U.S. at 401, 58 S.Ct. 630 ("The remedial character of sanctions imposing additions to a tax has been made clear by this Court in passing upon similar legislation."); see also Reiserer, 479 F.3d at 1163-64 ; Scadron's Estate v. Comm'r of Internal Revenue, 212 F.2d 188, 188 (2d Cir. 1954) ; Kirk v. Comm'r of Internal Rev., 179 F.2d 619, 620-21 (1st Cir. 1950) ; Reimer's Estate v. Comm'r of Internal Revenue, 12 T.C. 913, 917-18 (1949). Turning to the third factor, the Court notes that the BSA authorizes the Secretary to assess a penalty against all individuals who violate Section 5321, regardless of scienter.

In Rau, the court held that an action to impose a 50% addition to a taxpayer's liability for fraud survived the death of the taxpayer. The court noted that several other circuits had held that such actions did not abate with death, and that those decisions were largely based on the reasoning of the U.S. Tax Court in Reimer's Estate v. Commissioner, 12 T.C. 913, 1949 WL 290 (1949). In Reimer, the Tax Court found that such actions were remedial rather than penal in nature, noting that taxpayer fraud constitutes an injury to the property of the United States because it serves to " deprive the sovereign of money it is entitled to receive and obligated to collect" and " makes it necessary for the Government to expend other public funds in order to uncover the fraud and collect the proper amount of the tax due."

But in the face of the language of the Supreme Court in the Mitchell case, we do not feel at liberty to characterize the fraud addition as anything but remedial. In short, we agree with the interpretation placed on the decision in the Mitchell case by the Tax Court in the case at bar and in Estate of Reimer v. Commissioner, 12 T.C. 913. To the same effect, although collaterally, see also Bowles v. Farmers Nat. Bank of Lebanon, Ky., 6 Cir., 147 F.2d 425.

E.g., Jackson v. Commissioner of Internal Revenue, supra.[, 380 F.2d 661 (6th Cir. 1967)] Also, if the tax fraud were committed and a fraudulent return filed before the taxpayer's death but the fraud was not discovered until after his death, liability for a civil fraud addition imposed as a result of the taxpayer's tax evasion activities during his lifetime would survive his death and be borne by his estate. E.g., Estate of Rau v. Commissioner of Internal Revenue, 301 F.2d 51 (9 Cir.), cert. denied, 371 U.S. 823, 83 S.Ct. 41, 9 L.Ed.2d 62 (1962) ; Estate of Reimer v. Commissioner of Internal Revenue, 12 T.C. 913 (1949), affirmed per curiam, 180 F.2d 159 (6 Cir. 1950). A purpose of Section 6653(b), like that of its predecessors, e.g., § 293(b) of the 1939 Code, is to protect the tax revenue and to reimburse the Government for the public funds which must be expended in the investigation and uncovering of taxpayer tax evasion activities.

Consequently, we feel that the taxpayer's wrongful act is in the nature of an injury to the property of the United States.Reimer's Estate v. Comm'r of Internal Revenue, 12 T.C. 913, 920-21 (1949). At least one other decision in this district has already taken this view.

Such a ‘provision(s) of law’ is the addition for fraud under section 293(b). In view of the above statutory language and the nature of the addition for fraud— which is not a punishment but is remedial in nature, intending to compensate the Government for the heavy expense of investigation and the loss resulting from the fraud, Helvering v. Mitchell, 303 U.S. 391; Estate of Charles Louis Reimer, 12 T.C. 913, affd. (C.A.6) 180 F.2d 159—we see no more objection to applying the fraud addition in this case than in other instances wherein the owners of the income were not personally fraudulent. See, e.g., George M. Still, Inc., supra (corporations); Myrna S. Howell, 10 T.C. 859, affd. (C.A. 6) 175 F.2d 240 (joint returns).

Since we have found that part of the deficiency in 1942 was due to fraud, with intent to evade taxes, the petitioner is not entitled to the benefit of the forgiveness feature of section 6 of that act. Max Cohen, 9 T.C. 1156, 1167; Estate of Charles Louis Reimer, 12 T.C. 913. Decisions will be entered under Rule 50.

Such action does survive decedent's death. Estate of Charles Louis Reimer, 12 T.C. 913. (6) Petitioner Annette Caravetta Nitto's individual transferee liability, as this issue is narrowed by the parties, turns solely on the question of whether the amounts of the deficiencies and penalties to be determined against decedent's estate under Rule 50 exceed the amount of assets that remained with decedent after each of the transfers to his wife. If, upon the recomputation of decedent's taxes and penalties for the years before us, the aggregate liabilities do not exceed the amount of such retained assets, then petitioner is not individually liable as transferee.