Richard A. Frey - Page 6

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               Petitioner was found guilty of tax evasion for the taxable             
          years 1990, 1991, 1992, and 1993.  In particular, petitioner was            
          charged with criminally underreporting income in the amounts of             
          $44,000, $48,000, $44,000, and $52,989 for the tax years 1990,              
          1991, 1992, and 1993, respectively.  Petitioner admits to                   
          receiving the amounts in issue; however, he argues that the                 
          amounts received were nontaxable loans.  The factual question of            
          whether this money constituted income was necessarily decided in            
          reaching the judgment in the criminal case.  Petitioner was found           
          guilty of tax evasion for failure to report the amounts here in             
          controversy.  Accordingly, petitioner is estopped from arguing              
          that no part of the amounts received was taxable income and from            
          denying that he filed false and fraudulent Federal income tax               
          returns with the intent to evade income tax for 1990, 1991, 1992,           
          and 1993.                                                                   
               Furthermore, because petitioner's fraudulent intent, for               
          purposes of the penalties under section 6663, has been                      
          established for 1990, 1991, and 1992, it follows that the                   
          assessment and collection of the deficiency in income tax and the           
          penalties are not barred by the expiration of the statutory                 
          limitation period.  Sec. 6501(c)(1); see Taylor v. Commissioner,            
          T.C. Memo. 1997-82.                                                         
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                             under Rule 155.                          



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