Ronald L. Berkshire - Page 7

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            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.                                 











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