Virginia Ferguson, f.k.a. Virginia Del Bosque, and Estate of Armand J. Del Bosque, Deceased, Lori Del Bosque, Special Administrator, et al. - Page 18

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          sentencing guidelines, Mr. Jacobsen stipulated that he                      
          understated his taxable income in 1987 and 1988 by $58,125 and              
          that the corresponding tax loss was approximately $16,275.                  
               Petitioners’ stipulations in their criminal tax proceedings            
          do not collaterally estop them from challenging the specific                
          deficiency amount in this civil proceeding, because “the                    
          determination of an exact liability was not essential to the                
          judgment, a prerequisite to the application of the doctrine of              
          collateral estoppel.”  Moore v. United States, 360 F.2d 353, 356            
          (4th Cir. 1965) (internal quotation marks omitted); see Wapnick             
          v. Commissioner, T.C. Memo. 1997-133; Larson v. Commissioner,               
          T.C. Memo. 1993-188.  Nonetheless, petitioners’ stipulations of             
          the amounts of understated income in their criminal tax                     
          proceedings are strong evidence that Agent Fisher’s net worth               
          computations, and consequently respondent’s net worth                       
          computations in the notices of deficiency derived directly                  
          therefrom, are valid.  See Livingston v. Commissioner, T.C. Memo.           
          2000-121.  However, we find petitioners’ evidence in these civil            
          cases persuasive that some adjustments to income respondent                 
          determined, in addition to those respondent conceded, must be               
          made.  We conclude that the net worth computations and                      
          nondeductible expenditures used in determining the deficiencies             
          in tax for the years at issue should be adjusted as follows.                








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