Stone v. Commissioner
United States Tax Court
The petitioner, a physician, grossly understated his income for 3 consecutive years. He pleaded guilty to criminal charges of attempted tax evasion for those years, paid the fine, and served the sentence as imposed.
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The petitioner, a physician, grossly understated his income for 3 consecutive years. He pleaded guilty to criminal charges of attempted tax evasion for those years, paid the fine, and served the sentence as imposed. Held: 1. His criminal conviction collaterally estops him, but not his wife, from denying fraud in this proceeding; 2. Without relying on the conviction, the respondent has proved the petitioner's fraud by clear and convincing evidence; and 3. Under the amendments of secs. 6013 and 6653(b), I.R.C. 1954, relating to "innocent" spouses, the petitioner's wife has not shown that she is…
1Opinion of the Court
Simfson, Judge:
The respondent determined deficiencies in and additions to the income tax of the petitioners as follows:
Addition sec. Year Deficiency 666S (6) [1]
1959_ $4, 006. 69 $2, 003. 35
1960_ 11, 888. 96 5, 944. 48
1961. 13, 857. 68 6, 928. 84
The issues for decision in this case are: (1) Whether the conviction of the petitioner Nathaniel M. Stone for income tax evasion collaterally estops him or the petitioner Eva P. Stone from denying fraud in this case; (2) whether on the facts, without regard to the conviction, the petitioners are liable for the deficiencies and the fraud penalty…
2Cases cited29 opinions
- Spies v. United StatesSupreme Court of the United States · 1943
- Kercheval v. United StatesSupreme Court of the United States · 1927
- Otsuki v. CommissionerUnited States Tax Court · 1969
- Amos v. CommissionerUnited States Tax Court · 1964
- Gano v. CommissionerUnited States Board of Tax Appeals · 1930
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3Cited by683 opinions
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- Parks v. CommissionerUnited States Tax Court · 1990
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