- 14 - the parties to the suit and their privies are thereafter bound not only as to every matter which was offered and received to sustain or defeat the claim or demand, but as to any other admissible matter which might have been offered for that purpose. Id. at 597. But where the second action between the same parties is upon a different cause or demand, the judgment in the prior action has preclusive effect only as to those matters in issue or points controverted, upon the determination of which the finding or verdict was rendered. Id. at 597-598. In Neaderland v. Commissioner, 424 F.2d 639, 641 (2d Cir. 1970), affg. 52 T.C. 532 (1969), the court stated: "When a civil trial follows criminal proceedings which were based on the same facts, a different cause of action is involved and the doctrine of collateral estoppel rather than that of res judicata must be considered." See also Helvering v. Mitchell, 303 U.S. 391 (1938); United States v. Barnette, 10 F.3d 1553, 1561 (11th Cir. 1994); Towe v. Commissioner, T.C. Memo. 1992-689. The doctrine of res judicata is therefore not applicable. For reasons already explained, it is obvious that ascertaining petitioner's liability for these additions to tax was not essential to the District Court's judgment and the doctrine of collateral estoppel also has no preclusive effect. A. Section 6651(a)(1)--Failure To FilePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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