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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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