- 7 -
matters contained in the answer are petitioner's admissions that:
(1) The omission of specific items of income for the years in
issue is part of a 3-year pattern of intent to evade taxes; (2)
petitioner understated taxable income in the amounts of $52,322
for 1985, $75,753 for 1986, and $111,195 for 1987; and (3) the
deficiency for each of the years in issue is due to fraud with
intent to evade taxes. Additionally, petitioner's conviction
under section 7201 collaterally estops him from denying that
there is an underpayment of his income tax and that some part of
the underpayment is due to fraud for purposes of section
6653(b)(1)(A) and (B) for 1987. Rodney v. Commissioner, 53 T.C.
287, 305 (1960).
The above-pleaded facts clearly establish that petitioner
fraudulently underpaid his income taxes for the years in issue.
Thus, we are satisfied that the additions to tax for fraud for
the years in issue should be sustained by the entry of a default
judgment against petitioner pursuant to Rule 123(a).
To reflect the foregoing,
An appropriate order will
be issued, and decision will be
entered for respondent.
Page: Previous 1 2 3 4 5 6 7
Last modified: May 25, 2011