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determination is conclusive in subsequent suits based on a
different cause of action involving a party to the prior
litigation.” Id. The preclusive effect of a prior court’s
factual determination depends on whether the prior court had
jurisdiction to and did determine the fact at issue. See Brotman
v. Commissioner, 105 T.C. 141, 153 (1995).
For collateral estoppel to apply, resolution of the disputed
issue must have been essential to the prior decision. Meier v.
Commissioner, 91 T.C. 273, 282 (1988). Mr. Christensen was found
guilty of willfully filing false income tax returns for 1988,
1989, and 1990 in violation of section 7206(1). To sustain its
burden of proof under section 7206(1), the Government must
establish that the defendant willfully made a false statement on
his return.
The indictment did not charge Mr. Christensen or M.J. Wood
with any specific tax liability or amount. Instead, Mr.
Christensen was charged with receiving a specific item of income
that he knowingly failed to report on his 1990 return.
Furthermore, M.J. Wood’s conviction for aiding and assisting in
the preparation of a false corporate tax return was for the tax
year ending September 30, 1989, not September 30, 1990, the year
at issue before this Court. Establishing petitioners’ specific
tax liabilities is not an element of section 7206(1) or the other
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