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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