Dori R. Merriam, Transferee - Page 2

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               In a prior opinion issued in this case, we held that                   
          petitioner was liable as a transferee for Federal income tax owed           
          for the year ending September 30, 1986, by Napa Investment Corp.            
          (Napa).  Merriam v. Commissioner, T.C. Memo. 1995-432, affd.                
          without published opinion 107 F.3d 877 (9th Cir. 1997).                     
          Petitioner was president and sole shareholder of Napa.  James               
          Merriam, petitioner’s then-husband, ran Napa.  He signed                    
          petitioner’s name to many Napa documents.  Petitioner personally            
          signed many other Napa documents including a consent to action              
          which stated that she, as sole director, approved Napa’s lending            
          substantial sums to her, a promissory note stating that she                 
          borrowed substantial sums from Napa, and Napa checks including              
          checks payable to her.                                                      
               James Merriam arranged for his son from a prior marriage,              
          Ted Merriam, to represent petitioner in that proceeding.  The               
          case was fully stipulated under Rule 122.  Petitioner contends              
          that (1) the stipulation erroneously overstated her role in Napa,           
          which caused the Court to decide erroneously that she was liable            
          as a transferee; (2) she had no knowledge of the existence of the           
          case until after decision was entered; and (3) these                        
          circumstances constitute fraud on the Court.                                
               The sole issue for decision is whether fraud on the Court              
          occurred in this case.  We hold that it did not.                            

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