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burden of proof (viz., the deficiencies for 1983, 1984, and 1985
and the additions to tax under section 6661 for 1983 and 1985),7
he also has defaulted within the meaning of Rule 123(a).
Our finding of default here has the effect of deeming
admitted all of respondent's allegations in the answer relating
to, inter alia, the fraud issue. We have examined those allega-
tions and find them to be sufficient, if taken to be true by
petitioner's default, to show the existence of fraud for each of
the years 1983, 1984, and 1985.8 See Smith v. Commissioner, 91
T.C. 1049, 1059 (1988), affd. 926 F.2d 1470 (6th Cir. 1991);
Rechtzigel v. Commissioner, 79 T.C. 132, 142 (1982), affd. 703
F.2d 1063 (8th Cir. 1983).
Specifically, we find that the answer details facts showing
that petitioner did not report certain cash income he received
during each of the years 1983, 1984, and 1985 and that petitioner
knew it was illegal not to report such income.9
We hold petitioner in default as to the deficiencies in, and
7 See supra note 4, first paragraph.
8 We therefore need not address respondent's allegations in the
answer in support of her position that petitioner is collaterally
estopped from denying fraud for 1983.
9 In particular, the answer states, inter alia, that at the
criminal tax proceedings, petitioner allocuted, under penalty of
perjury or false statement, that, inter alia, during 1983, 1984,
and 1985, he received unreported cash income from two businesses
that he owned, that those cash receipts were not reported in the
books of those businesses, that he used the unreported income to
pay his personal expenses, and that he knew it was illegal not to
report the unreported income in his income tax returns.
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