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proper. The doctrine of collateral estoppel is intended to avoid
repetitious litigation by precluding a second litigation of an
issue of fact or law that was actually litigated and that
culminated in a valid and final judgment. Niedringhaus v.
Commissioner, 99 T.C. 202, 213 (1992). The doctrine applies
equally to posttrial convictions and convictions based upon a
guilty plea. Stone v. Commissioner, 56 T.C. 213 (1971);
Cleveland v. Commissioner, T.C. Memo. 1983-299. Accordingly, we
focus our attention on taxable years 1987 and 1988.
Section 6653(b)(1) provides that if any part of any
underpayment of tax required to be shown on a return is due to
fraud, there shall be added to the tax an amount equal to 75
percent of the portion of the underpayment which is attributable
to fraud. When a joint return is filed, however, it is necessary
for the Commissioner to establish that some part of the
underpayment was due to fraud on the part of both spouses if she
seeks to hold both spouses liable for additions to tax for fraud.
Sec. 6653(b)(3); Stone v. Commissioner, supra at 226-227.
Fraud is defined as an intentional wrongdoing designed to
evade tax believed to be owing. Miller v. Commissioner, 94 T.C.
316, 332 (1990). The Commissioner bears the burden to prove
fraud by clear and convincing evidence. Sec. 7454(a); Rule
142(b); Grosshandler v. Commissioner, 75 T.C. 1, 19 (1980). The
Commissioner must show that the taxpayer intended to evade taxes
known to be owing by conduct intended to conceal, mislead, or
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