- 14 -
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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