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respondent determined and we sustained income tax deficiencies
and civil fraud additions to tax relating to petitioners' tax
years 1985, 1986, 1987, and 1988. See Schachter v. Commissioner,
T.C. Memo. 1998-260.
In their respective Rule 155 computations, without
application of the claimed credit for the $250,000 criminal fine,
the parties agree that petitioners are liable for the following
deficiencies and additions to tax:
Additions to Tax
Sec. Sec. Sec. Sec. Sec. Sec. Sec.
6653 6653 6653 6653 6653 6653 6653 Sec.
Year Deficiency (a)(1) (a)(1)(A) (a)(1)(B) (b)(1) (b)(1)(A) (b)(1)(B) (b)(2) 6661
1985 $163,048 -- -- -- $81,524 -- -- ** $40,762
1986 163,948 -- $179 * -- $120,280 ** -- 40,987
1987 109,791 -- 662 * -- 72,408 ** -- 27,448
1988 21,488 $39 -- -- 12,262 -- -- -- 5,372
* 50 percent of interest due on portion of
underpayment attributable to negligence.
** 50 percent of interest due on portion of
underpayment attributable to fraud.
Throughout litigation of this case, petitioners have
maintained that imposition of the civil fraud additions to tax on
top of petitioner’s 2-year prison sentence and the $250,000
criminal fine would constitute double jeopardy and would violate
the U.S. Constitution. The Supreme Court, however, has held that
Congress may impose both criminal and civil sanctions with regard
to the same acts without violating the double jeopardy clause of
the U.S. Constitution. See Helvering v. Mitchell, 303 U.S. 391,
399 (1938); see also Hudson v. United States, 522 U.S. 93 (1996);
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