T.C. Memo. 2004-128
UNITED STATES TAX COURT
JOHN MARRETTA, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 2289-03. Filed May 27, 2004.
R determined that P was liable for penalties
pursuant to sec. 6663, I.R.C., for the 1992, 1993, and
1994 tax years. During those years, P received
distributions from a so-called Ponzi scheme. P did not
report as income the amount of the distributions. P
pleaded guilty to violating sec. 7201, I.R.C., for his
failure to declare the amount of the distributions he
received from the scheme in 1994. During P’s plea
hearing, he admitted (1) that he failed to report as
income the distributions he received from the scheme in
1992, 1993, and 1994, (2) that the distributions were
taxable income, and (3) that, when he filed his 1992,
1993, and 1994 Federal income tax returns without
reporting the distributions as income, he acted
voluntarily with the specific intent to violate a known
legal duty.
Held: Because P pleaded guilty to an attempt to
evade or defeat tax pursuant to sec. 7201, I.R.C., for
1994, P is estopped from challenging R’s determination
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