Mario Biaggi and Estate of Marie Biaggi - Page 1

                                        T.C. Memo. 2000-48                                             

                                     UNITED STATES TAX COURT                                           

                    MARIO BIAGGI and ESTATE OF MARIE BIAGGI, DECEASED,                                 
                           RICHARD BIAGGI, EXECUTOR, Petitioners v.                                    
                        COMMISSIONER OF INTERNAL REVENUE, Respondent                                   

                  Docket No. 16697-97.                Filed February 11, 2000.                         

                        P did not report gross income on account of the                                
                  receipt of shares of W Corp. stock in 1983 and the sale                              
                  of 25,000 W shares in 1985.  P is collaterally estopped                              
                  from contesting the facts established in his criminal                                
                  case, United States v. Biaggi, No. 87 Cr. 265                                        
                  (S.D.N.Y., Nov. 18, 1988), including extortion,                                      
                  bribery, and receipt of an unlawful gratuity in                                      
                  connection with his demand and receipt of W shares, and                              
                  filing false income tax returns for failing to report                                
                  income from his ownership of W shares.                                               
                        1.  Held: The fair market value of the W shares                                
                  was $11.20 a share; therefore, P omitted from gross                                  
                  income $1,260,000 in 1983 and $107,000 in 1985.                                      
                        2.  Held, further, P is liable for additions to                                
                  tax on account of fraud under sec. 6653(b)(1) and (2),                               
                        3.  Held, further, P is liable for additions to                                
                  tax under sec. 6661, I.R.C.                                                          
                        4.  Held, further, R has met his burden of proof                               
                  under sec. 6501(c)(1), I.R.C., and the statute of                                    

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