- 6 - Commissioner, 763 F.2d 1139, 1142-1143 (10th Cir. 1985), affg. T.C. Memo. 1984-152; Webb v. Commissioner, 394 F.2d 366, 377 (5th Cir. 1968), affg. T.C. Memo. 1966-81. Respondent has the burden of proving fraud by clear and convincing evidence. Sec. 7454(a); Rule 142(b); Stone v. Commissioner, 56 T.C. 213, 220 (1971). As indicated, respondent contends that petitioner is estopped from denying the existence of fraud for 1984 by virtue of petitioner's criminal conviction under section 7201. We agree. Collateral estoppel serves to protect litigants from the burden of relitigating an identical issue and promotes judicial economy by preventing unnecessary and redundant litigation. Meier v. Commissioner, 91 T.C. 273, 282 (1988). Under the doctrine of collateral estoppel, a valid, final judgment in a prior suit precludes, in a second cause of action, litigation of issues actually litigated and necessary to the outcome of the first action. Parklane Hosiery Co. v. Shore, 439 U.S. 322, 326 (1979); Niedringhaus v. Commissioner, 99 T.C. 202, 213 (1992); Meier v. Commissioner, supra. A criminal conviction based upon a charge of willful attempt to evade tax in violation of section 7201 necessarily carries with it the ultimate factual determination that part of the underpayment for the particular taxable year was due to fraud as encompassed in section 6653(b). Plunkett v. Commissioner, 465Page: Previous 1 2 3 4 5 6 7 Next
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