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),
I.R.C.
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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