Gerald Hickman - Page 7

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                                       OPINION                                        
               Petitioner concedes that he had gross income in the amounts            
          determined by respondent for the years in issue.  Petitioner                
          alleges, however, that the doctrines of collateral estoppel and             
          res judicata preclude respondent from seeking deficiencies in               
          excess of those found by the District Court and additions in tax.           
          I.  Collateral Estoppel and Respondent's Deficiency Determination           
               The primary issue in this case is whether the doctrine of              
          collateral estoppel precludes respondent from asserting tax                 
          deficiencies for the 1986 through 1988 tax years.  Petitioner               
          argues that the District Court's order of restitution is                    
          tantamount to a final determination of petitioner's tax                     
          liabilities.  Thereby, respondent is precluded from determining             
          tax liabilities in excess of those "determined" by the District             
          Court.  What is at stake for petitioner is the payment of an                
          additional $11,648 in income taxes.                                         
               A.  Collateral Estoppel                                                
               Respondent argues that the doctrine of collateral estoppel             
          does not apply for the tax years 1986 through 1988 because the              
          District Court did not decide the issue of petitioner's exact               
          income tax liabilities.  Thereby, respondent is not precluded               
          from determining and assessing petitioner's income tax                      
          liabilities.  Respondent sets forth two arguments in support of             
          this position.  First, the indictment did not charge petitioner             





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