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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
1967.
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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