T.C. Memo. 1997-12
UNITED STATES TAX COURT
ROBERT K. LAHODNY, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 7875-93. Filed January 7, 1997.
Robert K. Lahodny, pro se.
Christine V. Olsen, for respondent.
MEMORANDUM OPINION
LARO, Judge: Respondent moves for partial summary judgment,
arguing that petitioner's plea of guilty to criminal fraud under
section 7201 collaterally estops him from rebutting her
determination that he is liable for civil fraud under section
6653(b) for the same years. Respondent supports her motion with
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two exhibits, namely: (1) A grand jury indictment (Indictment)
of petitioner and Andrew Winslow Willis, and (2) petitioner's
plea agreement (Plea Agreement) to the charges contained in the
Indictment. The Court ordered petitioner to respond to
respondent's motion on or before November 19, 1996. Petitioner
failed to do so.
The Court must decide whether petitioner is collaterally
estopped from contesting that deficiencies in his income taxes
for the years at issue were due to fraud within the meaning of
section 6653(b) on account of his plea of guilty to a violation
of section 7201. We hold he is. Unless otherwise stated,
section references are to the Internal Revenue Code in effect for
the years in issue. Rule references are to the Tax Court Rules
of Practice and Procedure. Dollar amounts have been rounded to
the nearest dollar.
Background
Petitioner petitioned the Court to redetermine respondent's
determination of deficiencies of $168,198 and $32,696 in his 1979
and 1980 Federal income taxes, respectively, and $84,099 and
$16,348 additions to those respective taxes under section
6653(b). Petitioner resided in Texarkana, Texas, when he
petitioned the Court.
Petitioner was a defendant in the criminal case United
States v. Lahodny, which was docketed in the U.S. District Court
for the Southern District of California. In connection with this
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case, petitioner pleaded guilty on June 6, 1985, to tax evasion
for 1979 and 1980 in violation of section 7201. Petitioner was
represented by counsel when he pleaded guilty.
Petitioner had been indicted in or about May 1983 with
respect to the criminal matter. The Indictment charged that
petitioner was a partner in a major marijuana importation and
distribution network during the subject years, and that
petitioner used offshore entities and foreign bank accounts to
"launder" profits from that activity. The Indictment charged
that petitioner knowingly and willfully attempted to evade
Federal income tax for 1979 and 1980 by filing false and
fraudulent Federal income tax returns for those years in
violation of section 7201. The Indictment charged that
petitioner's 1979 taxable income was approximately $346,098, and
that his 1980 taxable income was approximately $80,152.
Respondent determined that petitioner received unreported
drug proceeds of $346,098 and $80,152 in 1979 and 1980,
respectively, and that these proceeds were includable in
petitioner's gross income for those years. Petitioner's 1979 and
1980 tax returns reported that his 1979 and 1980 gross income was
$2,370 and $7,800, respectively.
Discussion
Rule 121(a) provides that either party may move for summary
judgment upon any or all parts of the legal issues in
controversy. When either party makes such a motion, the opposing
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party must file "An opposing written response, with or without
supporting affidavits, * * * within such period as the Court may
direct." Rule 121(b). A decision on the merits of a party's
claim will be rendered by way of summary judgment "if the
pleadings, answers to interrogatories, depositions, admissions,
and any other acceptable materials, together with the affidavits,
if any, show that there is no genuine issue as to any material
fact and that a decision may be rendered as a matter of law."
Id. The moving party must prove that there is no genuine issue
of material fact, and factual inferences are viewed in the light
most favorable to the nonmoving party. United States v. Diebold,
Inc., 369 U.S. 654, 655 (1962); Preece v. Commissioner, 95 T.C.
594, 597 (1990).
The instant case is ripe for summary judgment. It is well
established that petitioner's conviction of criminal tax evasion
for 1979 and 1980 under section 7201 collaterally estops him from
denying that deficiencies in his income taxes for those years
were due to fraud for purposes of section 6653(b). The elements
of criminal tax evasion under section 7201 are not dissimilar to
the elements of civil tax fraud under section 6653(b), and a
guilty plea is equivalent to a conviction after trial for the
purpose of collateral estoppel. See, e.g., Johnson v. Sawyer,
47 F.3d 716, 722 (5th Cir. 1995); Gray v. Commissioner, 708 F.2d
243 (6th Cir. 1983), affg. T.C. Memo. 1981-1; Tomlinson v.
Lefkowitz, 334 F.2d 262, 264-265 (5th Cir. 1964); Castillo v.
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Commissioner, 84 T.C. 405, 409-410 (1985); Brooks v.
Commissioner, 82 T.C. 413, 431 (1984), affd. without published
opinion 772 F.2d 910 (9th Cir. 1985); Amos v. Commissioner,
43 T.C. 50 (1964), affd. 360 F.2d 358 (4th Cir. 1965).
Respondent's motion for partial summary judgment will be
granted.
To reflect the foregoing,
An appropriate order
will be issued.