James E. Stafford - Page 16

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          is deemed to have admitted receiving taxable income for all years           
          at issue and failing to file returns for those years reporting              
          the income.  Hence, respondent has shown by clear and convincing            
          evidence that an underpayment exists for all years at issue.                
              As to evidence that some portion of the underpayment for the            
          tax years 1985, 1986, and 1987 is due to fraud, a conviction for            
          willful attempt to evade or defeat income taxes under section               
          7201 precludes a taxpayer in a subsequent civil tax proceeding              
          from denying that an underpayment in his income tax for the                 
          taxable year of conviction was due to fraud.  Tomlinson v.                  
          Lefkowitz, 334 F.2d 262, 265 (5th Cir. 1964); Amos v.                       
          Commissioner, 43 T.C. 50, 53-56 (1964), affd. 360 F.2d 358 (4th             
          Cir. 1965).                                                                 
              It has been stipulated that petitioner was convicted under              
          section 7201 for tax years 1985, 1986, and 1987 in the U.S.                 
          District Court for the Southern District of Texas, and the                  
          judgment became final in August 1994.  Thus, petitioner is                  
          precluded from denying that underpayments of his income taxes for           
          1985, 1986, and 1987 were due to fraud.  Consequently,                      
          respondent's motion for summary judgment on the fraud issue as to           
          1985, 1986, and 1987 will be granted.                                       
              As to evidence that some portion of the underpayment for the            
          tax years 1982, 1983, 1984, and 1988 is due to fraud, the                   
          Commissioner meets her burden of proof if it is shown that the              
          taxpayer intended to evade taxes known to be owing by conduct               
          intended to conceal, mislead, or otherwise prevent the collection           

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