Estate of Spear v. Commissioner of Internal Revenue Service

OPINION OF THE COURT

BECKER, Circuit Judge.

Jeanette Spear and the Estate of her late husband, Leon Spear, (“taxpayers”) appeal the decision of the United States Tax Court assessing substantial income tax deficiencies and fraud penalties against them following a five-day trial. The tax court’s decision depends in significant measure on “deemed” facts resulting from a sanction imposed because of Jeanette Spear’s failure to appear and testify at trial. These deemed facts were critical to the outcome because they not only furnished the predicate for use by the Internal Revenue Service (“IRS”) of…