-16-
Habersham-Bey v. Commissioner, 78 T.C. 304, 312 (1982); Otsuki v.
Commissioner, 53 T.C. 96, 106 (1969).
Petitioner was convicted under section 7206(1) of filing a
false return for 1984. Petitioner was also indicted for and
convicted of failing to report in income for 1984 the proceeds of
four income tax refund checks totaling $195,489. Petitioner is
estopped by his conviction from arguing that he received no
income from the refund checks. We may consider his conviction
for failing to report the proceeds of the refund checks in
deciding whether he received but did not report $195,489 in
income in 1984. On the basis of the evidence presented,
respondent has shown by clear and convincing evidence that
petitioner intended to evade tax with respect to the income from
the Lopps' income tax refund checks ($195,489). Thus, petitioner
is liable for the addition to tax under section 6653(b)(2) with
respect to the underpayment for 1984 attributable to the Lopps'
tax refund checks.
Respondent contends that petitioner fraudulently underpaid
tax relating to the $676,720.68 he received as trustee for the
Lopps. We disagree.
Respondent points out that petitioner: (a) Received as
trustee for Mr. Lopp a $676,720.68 check dated May 7, 1984, from
the Nevada Title Co.; (b) bought two time deposits in his own
name in the amounts of $10,000 and $666,720.68 with the proceeds
of the check; (c) listed the account numbers of the two time
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