- 7 -
1985). Accordingly, petitioner’s prior conviction under section
7201 collaterally estops him from denying in the present civil
tax proceeding: (1) That petitioner’s failure to report the
unreported funds resulted in an underpayment in his 1996 income
tax; and (2) that at least part of the underpayment is due to
fraud within the meaning of section 6663. With respect to these
issues, respondent is entitled to summary judgment.
In his motion for summary judgment, respondent concedes that
petitioner is not collaterally estopped from challenging the
precise amount of the deficiency, inasmuch as the precise amount
of the “diverted funds” was not a necessary element of
petitioner’s section 7201 conviction. Respondent nevertheless
contends that he is entitled to summary judgment on this issue.
Respondent points to petitioner’s admission in the criminal case
that he received $1,551,863 that he failed to report on his 1996
tax return. Respondent also points to petitioner’s March 24,
2005, letter to the IRS, wherein he acknowledged that the amount
of his unreported income was “approximately USD1,550,000”, as
well as to the undisputed fact that between August 1999 and
September 2001 petitioner repaid the government $1,590,000.
Petitioner contends that the evidence as to the amount of
his unreported income is “inconsistent and, on that basis,
inconclusive”. Petitioner contends that respondent has failed to
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011