Lance Brown - Page 9

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          7605(b).  Petitioner argues further that by failing to refer                
          petitioner’s case to respondent's Criminal Investigation Division           
          when the revenue agent initially suspected fraud, respondent’s              
          revenue agent violated petitioner's rights under the Fourth and             
          Fifth Amendments.  Because of respondent’s alleged violation of             
          proper audit procedures and because petitioner’s constitutional             
          rights were allegedly violated, petitioner argues that he should            
          be relieved of any fraud additions to tax for 1986 and 1987.                
               We disagree.  In filing his erroneous 1986 and his erroneous           
          1987 original and amended Federal income tax returns and through            
          his conduct during the course of respondent’s audit, petitioner             
          repeatedly demonstrated an intent to fraudulently underreport his           
          Federal income taxes for 1986 and 1987.  Comparing gross income             
          as reported on petitioner’s original tax returns to gross income            
          as agreed to by petitioner herein, petitioner underreported his             
          gross income by approximately $21,766 for 1986 and by                       
          approximately $17,000 for 1987.                                             
               During the audit, petitioner generally refused to cooperate            
          with, and made material misrepresentations to, respondent’s                 
          revenue agent.  Petitioner pleaded guilty to filing a materially            
          false Federal income tax return for 1987.  Although his                     
          conviction for this year does not conclusively establish his                
          liability for the fraud additions to tax for 1986 and 1987, it              
          does collaterally estop petitioner from denying that he willfully           
          and knowingly filed a false Federal income tax return for 1987,             

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