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convictions. Summary judgment was entered in favor of Zebrowski
on March 2, 1993.
Petitioner's 1988 Federal income tax return was filed on
July 19, 1991. Petitioner filed in 1988 using single status but
has since conceded that his filing status should have been
married. Petitioner reported income of $31,400 from wages,
salaries, tips, etc., on his return, as well as $218 of taxable
interest income. Petitioner did not include any of the funds he
had misappropriated from Zebrowski in his income reported for
1988.
The Internal Revenue Service (IRS) began an investigation of
petitioner during 1992. Petitioner failed to provide any income
records other than four or five bank statements and a copy of a
tax return in response to IRS document requests.
OPINION
Unreported Income
Respondent has argued that the doctrine of collateral
estoppel bars petitioner from denying the receipt and the amount
of unreported income set forth in the notice of deficiency.
Because of the lack of identity of issues and uncertainty of when
the misappropriated amounts determined in the prior litigation
were taken, the application of collateral estoppel in this case
is problematic. Detailed analysis of that issue is less
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