Kosinski v. Commissioner

OPINION

SUTTON, Circuit Judge.

Timothy and Barbara Kosinski challenge a decision by the Tax Court upholding a tax deficiency and a fraud penalty. They raise two issues: that earlier findings made by a federal district court in the course of imposing a sentence on Timothy Kosinski in a criminal case precluded the Tax Court’s deficiency findings, and that the government failed to show that the deficiency resulted from fraud. Because the district court’s sentencing findings lack issue-preclusive effect and because the government carried its burden of proving fraud, we affirm.

I

This case arises from…