- 41 -
142, 145-146 (1918); Bigelow v. Old Dominion Copper Mining &
Smelting Co., 225 U.S. 111, 141 (1912); Hawkins v. Glenn, 131
U.S. 319, 329 (1889); Sparks Nugget, Inc. v. Commissioner, T.C.
Memo. 1970-74 (sole shareholder in privity with corporation),
affd. 458 F.2d 631 (9th Cir. 1972); see also Seaboard Commercial
Corp. v. Commissioner, 28 T.C. 1034, 1047-1048 (1957) (successor
corporate sole shareholder in privity with prior corporation);
Estate of Egan v. Commissioner, 28 T.C. 998, 999 (1957), affd.
260 F.2d 779 (8th Cir. 1958) (transferee stockholder in privity
with transferor corporation); American Range Lines, Inc. v.
Commissioner, 17 T.C. 764, 771 (1951) (Court reviewed), affd. on
this issue, modified in part and remanded 200 F.2d 844 (2d Cir.
1952) (shareholder bound by corporation, but corporation not
bound by shareholder). Petitioner was president and sole
shareholder of Resyn. He controlled Resyn. He personally used
some of Resyn's unreported income. Petitioner attended the
bankruptcy trial and had the same lawyer as Resyn. The fact that
the same attorney represents the parties in both actions is a
factor that may be considered in deciding whether the parties are
in privity. See Crane v. Commissioner of Dept. of Agric., 602 F.
Supp. 280, 286 (D. Me. 1985). Petitioner does not dispute that
he had an interest in opposing a finding that he caused Resyn to
commit tax fraud by creating fictitious entities and diverting
and not reporting Resyn income.
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