Martin and Barbara Schachter - Page 2




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                                SUPPLEMENTAL OPINION                                  
               SWIFT, Judge:  This matter is before us under Rule 155 on              
          the parties' disputed computations of the decision to be entered            
          herein.                                                                     
               The issue for decision is whether petitioners should be                
          allowed a credit against civil fraud additions to tax for a                 
          $250,000 criminal fine imposed on petitioner Martin Schachter               
          (petitioner).                                                               
               Unless otherwise indicated, all section references are to              
          the Internal Revenue Code in effect for the years in issue, and             
          all Rule references are to the Tax Court Rules of Practice and              
          Procedure.                                                                  
               On September 23, 1993, petitioner pleaded guilty under                 
          section 7201 to one count of income tax evasion and to one count            
          of conspiracy under 18 U.S.C. section 371 (1988) to defraud the             
          United States with respect to his individual Federal income tax             
          liability for 1986.  In connection with the above plea, under the           
          authority of 18 U.S.C. sections 3622 and 3623 (Supp. II, 1984),             
          now repealed and replaced by 18 U.S.C. sections 3572 and 3571               
          (1994), respectively, a Federal District Court judge sentenced              
          petitioner to serve 2 years in prison, to pay a fine of $250,000            
          (criminal fine), and to pay restitution to the Internal Revenue             
          Service of $161,845.                                                        
               After petitioner's criminal conviction and sentencing,                 


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