Martin and Barbara Schachter - Page 3




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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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