Henry F. K. Kersting - Page 14




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          rejected petitioner's claim the Government improperly used a John           
          Doe Summons).  We are satisfied that no special circumstances               
          exist which preclude the application of collateral estoppel.                
          Because the requirements for application of collateral estoppel             
          have been satisfied, petitioner is collaterally estopped from               
          denying that he had gross income during 1982 through 1988 in the            
          amounts determined by the District Court in Kersting                        
          (Consolidated Cases).  Accordingly, we sustain respondent's                 
          determination of unreported income for all years.                           
          Business Expenses                                                           
               In various pretrial pleadings, petitioner argued generally             
          he was entitled to offsetting deductions for bad debts and                  
          business expenditures of the nominee corporations that were not             
          taken into account by respondent when computing the unreported              
          income.  Petitioner's interest in this issue waned by the time of           
          trial in this case as he presented no witnesses and neither                 
          listed this as an issue nor presented any legal argument on this            
          point on brief. 6                                                           


               6 Liberally construing his brief, we glean the total of                
          petitioner's "argument" on this point from the following six                
          requested findings of fact:                                                 
                         *    *    *    *    *    *    *                              
               17.  The corporations employed and paid attorneys to                   
               represent them and/or Henry Kersting.                                  
                                                             (continued...)           




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