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the fraudulent acts and intent of corporate officers. Auerbach
Shoe Co. v. Commissioner, 216 F.2d 693 (1st. Cir. 1954), affg. 21
T.C. 191 (1953); DiLeo v. Commissioner, supra; Federbush v.
Commissioner, supra.
Generally, courts have recognized that in limited
situations, because of mental incapacity or disease, a taxpayer
may not have the requisite fraudulent intent. See Farber v.
Commissioner, 43 T.C. 407, 421-422 (1965); Hollman v.
Commissioner, 38 T.C. 251, 259-260 (1962).
We concluded in a prior opinion in these consolidated cases
that for 1983 Elvin, but not YOC, is collaterally estopped from
denying civil tax fraud. Yarbrough Oldsmobile Cadillac, Inc. v.
Commissioner, T.C. Memo. 1993-20. We therefore must now decide
whether Elvin is liable for the fraud additions to tax for 1984,
1985, and 1986, and whether YOC is liable for the fraud additions
to tax for 1983, 1984, and 1985.
Petitioners, as indicated above, disagree with the
substantive merit of many of the adjustments respondent has made,
and petitioners therefore argue that no significant underpayment
of tax was reflected on petitioners' and on YOC's Federal income
tax returns as filed.
Petitioners also argue that the adverse effects of Elvin's
brain tumor precluded Elvin from forming any fraudulent intent.
Petitioners argue that, in the preparation of the tax returns,
Elvin relied on YOC's accountant, that Elvin did not sign YOC's
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