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Accordingly, we find that respondent’s reconstruction
correctly determined petitioner’s taxable income.
Fraudulent Failure To File for 1989
Section 6651(f) generally provides that if any failure to
file any return is fraudulent, there shall be added to the amount
required to be shown as tax on the return 15 percent of the
amount of such tax if the failure to file is for less than a
month, with an additional 15 percent for each additional month or
fraction thereof during which the failure continues, not
exceeding 75 percent in the aggregate. Respondent bears the
burden of proving fraud under section 6651(f) by clear and
convincing evidence. See sec. 7454(a); Rule 142(b); Parks v.
Commissioner, 94 T.C. 654, 660-661 (1990).
Respondent argues that petitioner is collaterally estopped
from denying liability for the addition to tax under section
6651(f) because petitioner pleaded guilty to a violation of
section 7201 in taxable year 1989.
The doctrine of collateral estoppel is intended to avoid
repetitious litigation by precluding the relitigation of any
issue of fact or law that was actually litigated and that
resulted in a final judgment. See Montana v. United States, 440
U.S. 147, 153 (1979). “Under the doctrine of collateral estoppel
a party is precluded from litigating an issue if (1) the
identical issue has been (2) actually litigated in a prior suit
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