Burke v. Commissioner

Both petitioners and respondent have moved for summary adjudication with regard to a question of res judicata. The question is whether the rule of res judicata precludes respondent from litigating an additional deficiency in tax (and additions to tax) on account of petitioners' alleged fraud. In a prior proceeding in this Court, respondent moved for leave to amend the answer to raise the fraud issue. That motion was denied. Respondent did not appeal our denial, and our decision in the prior proceeding is now final. Held: The rule of res judicata is not a bar to respondent's raising the issue…