Michael J. Fitzpatrick - Page 1

                                 T.C. Memo. 1997-158                                  

                               UNITED STATES TAX COURT                                

                        MICHAEL J. FITZPATRICK, Petitioner v.                         
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 9269-94.                     March 31, 1997.                

                    During 1981 and 1982, P was a loan officer at Bank                
               of New York.  P accepted money from the Bank's clients                 
               in order to approve or modify loans.  In Fitzpatrick v.                
               Commissioner, T.C. Memo. 1995-548, the Court decided                   
               that P, because he had been convicted of tax evasion                   
               under sec. 7201, I.R.C., for the years 1981 and 1982,                  
               was collaterally estopped from denying his                             
               participation in a bribery scheme and from denying that                
               some part of the underpayment of his income tax was due                
               to fraud for purposes of sec. 6653(b), I.R.C., for each                
               of those taxable years.                                                
                    Held:  P's 1981 and 1982 gross income includes the                
               payments he received from clients in those years.                      
                    Held, further, P is liable for the additions to tax               
               under sec. 6653(b), I.R.C., for 1981 and 1982, and for                 
               purposes of sec. 6653(b)(2), as in effect for 1982, the                
               addition to tax applies to the entire amount of unreported             
               income he received in 1982.                                            

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