- 14 -
1. Petitioner Is Collaterally Estopped To Deny Fraud for
Fiscal Year 1987
Petitioner pled guilty to income tax evasion under section
7201 for fiscal year 1987. A guilty plea is an admission of all
the elements of the criminal charge. McCarthy v. United States,
394 U.S. 459, 465-466 (1969). Petitioner's conviction as a
result of a guilty plea of criminal tax evasion under section
7201 for fiscal year 1987 collaterally estops it from denying
that some part of the deficiency in its income tax for fiscal
year 1987 was due to fraud for purposes of section 6653(b)
because the elements of criminal tax evasion under section 7201
are virtually identical to the elements of civil tax fraud under
section 6653(b). Plunkett v. Commissioner, 465 F.2d 299, 305-306
(7th Cir. 1972), affg. T.C. Memo. 1970-274; Stone v.
Commissioner, 56 T.C. 213, 221-223 (1971); Amos v. Commissioner,
43 T.C. 50, 55 (1964), affd. 360 F.2d 358 (4th Cir. 1965).
2. Fraud for Fiscal Year 1988
Petitioner's fraudulent intent may be established by the
acts of its sole shareholder, Dr. Cole, who completely dominated
its activity. See DiLeo v. Commissioner, 96 T.C. 858, 875 (1991)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011