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physician and businessman. He was thoroughly familiar with his
business and financial interests, and he controlled them.
Consequently, it is unlikely that he would not have realized that
his Federal tax liabilities were substantially underreported for
1987 and 1988.
b. False Returns
Respondent contends, and correctly so, that the doctrine of
collateral estoppel bars petitioner from contesting any issues
actually litigated during his criminal trial. Considine v.
United States, 683 F.2d 1285 (9th Cir. 1982). He was found
guilty of willfully subscribing to a false return for 1987 and
1988. Thus, this indicium of civil fraud is conclusively
established. Stobaugh v. Commissioner, T.C. Memo. 1984-112.
c. Understatements of Income
Substantial understatements of income in successive years,
when coupled with other circumstances showing an intent to
conceal or misstate income, justifies the inference of fraud.
Holland v. United States, 348 U.S. 121, 137 (1954); Patton v.
Commissioner, 799 F.2d 166, 171 (5th Cir. 1986), affg. T.C. Memo.
1985-148.
In this case petitioner intentionally failed to report gross
income from his medical practice in the amounts of $175,285 for
1987 and $191,979 for 1988. These understatements represented a
30-percent omission of income for 1987 and a 43-percent omission
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