Darlow T. Madge - Page 8




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          See Recklitis v. Commissioner, 91 T.C. 874, 910 (1988).  Those              
          badges include a pattern of understatement of income, failure to            
          file tax returns, implausible or inconsistent explanations of               
          behavior, concealing assets, and failure to cooperate with tax              
          authorities.  See, e.g., Bradford v. Commissioner, 796 F.2d 303,            
          307-308 (9th Cir. 1986), affg. T.C. Memo. 1984-601.  Each of                
          those badges is present in this case.  Petitioner’s use of false            
          Federal identification numbers to conceal bank accounts and                 
          failure to make estimated tax payments are further evidence of              
          his intent to conceal income and prevent the collection of tax.             
          See Rowlee v. Commissioner, 80 T.C. 1111, 1123 (1983); Leggett v.           
          Commissioner, T.C. Memo. 1999-100, affd. 221 F.3d 1357 (11th Cir.           
          2000).  We conclude that respondent has proven fraud for each               
          year by clear and convincing evidence.                                      
               It is well settled that a conviction under section 7201                
          collaterally estops a taxpayer from denying fraud for purposes of           
          former section 6653(b).  See Blohm v. Commissioner, 994 F.2d                
          1542, 1554 (11th Cir. 1993), affg. T.C. Memo. 1991-636; Amos v.             
          Commissioner, 43 T.C. 50, 54-56 (1964), affd. 360 F.2d 358 (4th             
          Cir. 1965).  In view of the substantive identity between the                
          elements considered under section 6653(b)(1) and section 6651(f),           
          petitioner’s conviction under section 7201 for the years 1990               
          through 1993 collaterally estops him from denying fraud for those           








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