Carolyn M. Lee - Page 5

                        material matter.  Said income tax return reported                             
                        total income of $20,783.26, whereas petitioner                                
                        knew and believed that her total income was                                   
                        substantially in excess of that which was                                     
                  (d) An issue in the instant Tax Court case is whether                               
                        petitioner received income over and above the                                 
                        amount reported on her income tax return for the                              
                        1989 taxable year.                                                            
                  (e) The fact that petitioner received income which                                  
                        intentionally was not reported on her 1989 income                             
                        tax return is evidence, in part, that the                                     
                        underpayment was due to fraud.                                                
                  (f) The prior criminal conviction of petitioner under                               
                        I.R.C. � 7206(1) is conclusive and binding upon                               
                        petitioner, and by reason thereof, the petitioner                             
                        is estopped in this case under the doctrine of                                
                        collateral estoppel, to deny that she willfully                               
                        made and subscribed to a false income tax return                              
                        for the 1989 taxable year that she knew was not                               
                        true and correct as to every material matter in                               
                        that she failed to report the substantial                                     
                        additional income that she received in the 1989                               
                        taxable year.                                                                 
                  Petitioner did not file a reply to respondent's allegations.                        
            On September 29, 1994, respondent filed a motion under Rule 37(c)                         
            to have the undenied allegations of fact deemed admitted.  By                             
            notice of filing dated September 29, 1994, the Court directed                             
            petitioner to file a reply on or before October 20, 1994.                                 
            Petitioner did not respond, and we granted respondent's motion on                         
            October 28, 1994.                                                                         
                  Petitioner was released from prison sometime before July                            

Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011