Henry Deletis, Jr. - Page 15

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          records of his income from this scheme.  He engaged in an illegal           
          activity and attempted to conceal that fact from his employer,              
          the bank originating the new car loans, and the dealership's                
          auditors, as well as from the tax authorities.  He omitted the              
          income from his 1966 return, and he failed to file a return for             
               Based on this course of conduct, we find that petitioner               
          acted fraudulently during 1966, and his 1966 Federal income tax             
          return was fraudulent with the intent to evade tax.  The doctrine           
          of collateral estoppel bars petitioner from contesting the                  
          addition to tax for fraud under section 6653(b) for taxable year            
          1967.  Amos v. Commissioner, supra; Arctic Ice Cream Co. v.                 
          Commissioner, supra.  Petitioner pleaded guilty to a charge of              
          receiving taxable income of $92,168.61 in 1967 as to which he               
          willfully and knowingly attempted to evade taxes.  Accordingly,             
          petitioner will be held liable for the additions to tax for fraud           
          for both 1966 and 1967, and the statute of limitations does not             
          bar respondent from assessment of the deficiencies and additions            
          to tax for either year.                                                     
          Diverted Dealership Income                                                  
               Section 61 defines gross income to mean all income from                
          whatever source derived.  This definition encompasses all                   
          "accessions to wealth, clearly realized, and over which the                 
          taxpayers have complete dominion."  Commissioner v. Glenshaw                
          Glass Co., 348 U.S. 426, 431 (1955).  It includes funds acquired            

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