Leo N. Levitt and Ruth G. Levitt - Page 37

                                       - 37 -                                         
               2.   Grand Jury Transcripts                                            
               Petitioners allege that respondent relied on grand jury                
          transcripts to determine petitioner's civil tax liability in                
          this case.  Petitioner points out that O'Byrne mentioned the                
          transcripts in his criminal referral letter.  However, O'Byrne              
          testified and we believe that he did not rely on grand jury                 
          testimony to develop petitioners' civil tax liability.  Revenue             
          Agents Cronin and Dorgeval did not read the grand jury                      
          transcripts; they used Resyn's business records and third party             
          records, all of which existed independently of the grand jury.              
          Thus, we are convinced that respondent did not use grand jury               
          transcripts to develop the civil tax case.                                  
          B.   Whether Petitioner Is Collaterally Estopped From Denying               
               Factual Findings of the Bankruptcy Court                               
               1.   Background                                                        
               Petitioners contend that collateral estoppel does not                  
          prevent petitioner from contesting factual findings made by the             
          bankruptcy court in In re Resyn Corp., 81-2 USTC par. 9808                  
          (Bankr. D.N.J. 1981)  We disagree.                                          
               If collateral estoppel applies, issues which were litigated            
          and decided in an earlier case on a different cause of action               
          cannot be relitigated by the parties or their privies.  Montana             
          v. United States, 440 U.S. 147, 153 (1979); Parklane Hosiery Co.            
          v. Shore, 439 U.S. 322, 326 n.5 (1979); Commissioner v. Sunnen,             
          333 U.S. 591, 597 (1948).  Collateral estoppel protects                     

Page:  Previous  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  Next

Last modified: May 25, 2011