-2- Background Petitioner resided in California at the time the petition was filed. On August 1, 2006, respondent issued petitioner a notice of deficiency based on petitioner’s criminal tax evasion convictions in the U.S. District Court for the Northern District of California for the years 1996, 1998, and 1999.2 Respondent determined deficiencies in petitioner’s Federal income tax totaling $66,828 and civil fraud penalties under section 6663 totaling $50,121. Petitioner filed a timely petition to this Court on October 16, 2006. On December 5, 2006, respondent timely filed his answer. Respondent’s answer states in relevant part: FURTHER ANSWERING the petition in respect to respondent’s determination that the petitioner is liable for the civil fraud penalty pursuant to I.R.C. section 6663 for taxable years 1996, 1998, and 1999, respondent affirmatively relies upon the doctrine of collateral estoppel, and alleges: The answer goes on to allege facts regarding petitioner’s criminal conviction which would tend to support the application of collateral estoppel. Petitioner did not file a reply. On March 28, 2007, 113 days after the filing of the original answer, respondent filed a motion for leave to file amendment to 1(...continued) the nearest dollar. 2Petitioner’s conviction for 1999 was reversed by the U.S. Court of Appeals for the Ninth Circuit. United States v. Shang, 114 Fed. Appx. 813 (9th Cir. 2004).Page: Previous 1 2 3 4 5 6 7 NextLast modified: March 27, 2008