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Respondent presented evidence on the presence of several
indicia of fraud. Among other things, respondent claims that the
following indicia clearly and convincingly establish fraud:
Dr. Wilkinson's conviction under section 7203; petitioners'
understatement of income; petitioners' failure to make estimated
tax payments; petitioners' failure to file tax returns; and
petitioners' failure to cooperate with tax authorities.
First, respondent argues that Dr. Wilkinson's conviction for
violating section 7203 is evidence of fraud. Citing Castillo v.
Commissioner, supra at 409-410, respondent also argues that
Dr. Wilkinson is collaterally estopped from denying that he
willfully failed to file his 1988 return. It is well settled
that a taxpayer's conviction under section 7203 for a given year
conclusively establishes the willfulness of that taxpayer's
failure to file returns. Id. However, willful failure to file,
even over an extended period of time, does not conclusively
establish the fraudulent intent required under sections 6653(b)
and 6651(f). Grosshandler v. Commissioner, 75 T.C. 1, 19
(1980); see also Sarcone v. Commissioner, T.C. Memo. 1985-548.
An intent to evade taxes is not an element of section 7203; that
section may be violated by the willful failure to pay a tax, file
a return, maintain records, or supply information. Although
Dr. Wilkinson's conviction under section 7203 collaterally estops
him from denying that he willfully failed to file his 1988
return, it does not bar him from arguing that his failure was
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