T.C. Mem o. 2 01 3- 27 4

UNITED STAT ES TAX COURT

BOHDAN SENYSZYN AND KEL LY L. SENYSZYN, Peti ti on ers v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 97 21 -1 1. File d Dec em be r 2, 2 01 3.

Bo hd anSen y sz yn a ndKell y L. Senyszyn, p ro se. Mar co Fran co an d Lydia A. Br an ch e, fo r res po nd en t.

MEMORANDUM OPINION HALPERN, Ju dg e: By

no ti ce o f de fic ie nc y

da te d F eb ru ary 15 , 20 11 (n ot ic e), res po nd en t d et erm in eda de fic ie nc y inpe ti ti on ers ' 20 03 Fed eral in co m e ta x o f $8 1,7 46 to ge th er wi th a frau d p en al ty of $6 1,3 10 an d a n a ccu racy-rela te d- 2 -

[* 2] pe na lt y

of $ 16 ,34 9. Pet it io ne rs ha ve ass ig ne d e rro r to th os e d et erm in at io ns ,

1
an d, i n p art ia l re sp on se , res po nd en t re li es on th e aff irmativ e d efen se of c ol la te ral
es to pp el , bas edon Mr. Sen y sz yn's 20 08 co nv ic ti on for tax ev as io n. Re sp on de nt
m ov es forpa rti al su m

m ary ad jud ic at io n t ha t (1 ) pe ti ti on ers are es to pp edfro m de nyin g t ha t dur in g 2 00 3 M r. Sen y sz yn re cei ve d u nr ep orte d i nc om e o f $2 52 ,72 6, (2 ) pe ti ti on ers are es to pp edfro m de nyin g t ha t the frau d p en al ty app li es for 20 03 , an d (3 ) th e p eri odof l im it at io ns on ass es sm en t an d c ol le ct io n o f ta x re m ai ns op en . Fo r th e rea so ns st at edbe lo w, we will gra ntinpa rt a ndde ny in p artres po nd en t's
m ot io n (moti on ). Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o t he Int ern al Rev enue Co de ineffe ctfor20 03 , andall Ru le refe ren ces are t o t he Tax C ou rt Ru le s o f Prac ti ce an d P ro cedur e. All do ll ar am ou nt s h av e b eenrou nd edto th e ne ares t d ol la r. W e m ay gra ntsu m

m ary jud gm en t wi th res pe ctto all or a ny partof t he leg al is su es inco nt ro ve rs y

"i f th e p le ad in gs , ans wers to in te rro ga to rie s, d ep os it io ns , adm is si on s, an d a ny oth er ac cep tabl e m at eri al s, t og ethe r with t he affi da vi ts or
Res po nd en t d et erm in edth e fraudpe na lt y on ly w it h re sp ectto pe ti ti on er 1 hu sb an d (M r. Sen y sz yn) , andhe de te rm in edth e acc ur acy-relate d p en al ty w it h res pe ctto bo thpe ti ti on ers bu t, wi th res pe ctto Mr. Sen y sz yn, o nl y as a n a lt ern at iv e to th e fraudpe na lt y .- 3 -

[* 3] de cl arat io ns , if an y , sh ow tha t the re i s n o g enui ne di sp ut e as to an y m at eri al factan d t ha t a d eci si on m ay be ren de redas am at te r of law." Rul e 1 21 (a) and(b)
. The m ov in g p arty

be ars th e b ur de n o f pr ov in g t ha t n o g enui ne di sp ut e as to an y
m at eri al factex is ts , andwe wil l draw an y factua l i nf

eren ces inth e li gh t m os t fav or ab le to th e n on m ov in g p arty . See, e.g ., Ano nym ou s v . Comm is si on er, 1 34 T.C. 13 , 15 (20 10 ) (ci ti ng Dahl st ro m v. Co m mis si on er, 8 5 T.C. 8 12 , 82 1 (1 98 5) ). Inres po ns e to a pr op erl y

supp orte d m ot io n fo r su m m ary jud gm en t, "a n a dv ers e pa rty m ay

no t re stup on th e m ere a ll eg at io ns or d en ia ls of s uc h p arty 's p le ad in g, bu t s uc h p arty 's re sp on se , by affi da vi ts or d ecl arat io ns or a s o th erwi se pro vi de d i n th is Ru le , m

us t s etforth sp eci fic fact s s ho win g t ha t the re i s a g enui ne di sp ut e fo r tri al ." Ru le 12 1( d)
. Bac kg ro un d The fol lo win g fa ct s ar e g athe redfro m th e p le ad in gs , th e m ot io n, res po nd en t's de cl arat io n i n s up po rt o f th e m ot io n, re sp on de nt 's m em or an du m of la w insupp ort o f th e m ot io n, p et it io ne rs ' ob jecti on , pet it io ne rs ' de cl arat io n i n supp ort o f th e o bjec ti on , andot he r it em s co ns ti tu ti ng th e rec or d. Pet it io ne rs , hu sb an d andwife , res id edinNew Jer se y at the ti m e th e p et it io n was fil ed
.- 4 -

[* 4] Dur in g 2 00 3, M r. Sen y sz yn was em pl oyed as a rev enue ag en t i n t he Int ern al Rev enue Serv ic e's (IRS) Larg e an d M id -Si ze Bu si ne ss Div is io n. In th atcap aci ty, Mr. Se nyszyn was re sp on si bl e fo r ex am in in g a ndin ve st ig at in g c om pl ex tax returns fil edby larg e co rp or at io ns . Am on g o th er thi ng s, M r. Sen y sz yn's du ti es as a rev enue ag en t i nc lu de d re co gn iz in g i nd ic at or s o f frau du le ntact iv it y . In 2 00 7,
res po nd en t re m ov edMr. Sen y sz yn fr om hi s p os it io n a s a r ev enue ag en t af te r he pl ead edgu il ty in Fe de ral Dis tri ctCo urt t o fi li ng fal se returns as a n IR S ag en t, t ax ev as io n, s tru ctur in g e va si ve fin an ci al tra ns act io ns , andba nkfrau d. Se e Sen y sz yn v. Dep 't o f Treas ury , 46 5 F ed . App x. 9 35 (Fed . Cir . 20 12 ). Pet it io ne rs ti m el y

fil edth ei r Fo rm

10 40 , U.S. Ind iv idua l In co m e Tax Return, fo r 20 03 . On th atreturn, p et it io ne rs rep orte d wag es of $ 78 ,11 6, g ro ss rece ip ts of $2 5,8 50 on Sch edul e C, Pro fitor Lo ss Fro m Bu si ne ss , andgro ss rece ip ts of $ 1,2 00
on Sch edul e F, Pro fitor Lo ss Fro m Farm in g. Pe ti ti on ers di d n otrep ort g ro ss in co m e fro m

an y ot he r so ur ces on th ei r return, n ordi d t he y ot he rwis e d is cl os e an y ot he r so ur ces of i nc om e o n t he return o r on a st at em en t at ta ch edto th e return. Mr. Se nyszyn was the de fen da ntina cri min al cas e, Uni te d S ta te s v . Sen y sz yn, No . 2: 06 -CR- 03 11 -0 1 (D.N.J . fil edApr. 1 3, 2 00 6) , bro ug htinth e U.S. Dis tri ctCo urt fo r th e Dis tri ctof Ne w Jer se y . On Sep te m be r 20 , 20 07 , th e U.S.- 5 -

[* 5] Att orne y

forth e Dis tri ctof Ne w Jer se y fil eda supe rs ed in g i nf

orm at io n i n t ha t
cas e, whi chsetforth th e fo ll owi ng ch arg e ag ai ns t h im : COUNT TW O TAX EVA SION 1. Th e al le ga ti on s co nt ai ne d i n p arag rap hs 1 thr ou gh 10 of Co un t On e o f th is Supe rs ed in g In fo rm at io n are re pe at ed , real le ge d, an d i nc or po rat edby referen ce as th ou gh ful ly set f orth he rei n. 2. Du rin g t he cal en da r y ear 2 00 3, d efen da ntBOHDAN SENYSZYN em

be zzl edtax ab le in co m e fro m th e sa le of r eal est at e own edby D H th atwas i n a dd it io n t o t he in co m e p ai d t o h im as s al ary an d wag es by the IRS. Sp eci fic al ly, de fen da ntBOHDAN SENYSZYN em

be zzl edap pr ox im at el y

$2 52 ,72 6.0 0 fr om

th e Nov em be r 19 , 20 03 sal e o f DH-own edpro pe rty in An do ve r Town sh ip id en ti fie d a s Lo t 7 2, wh ic h was so ldfor$3 51 ,00 0.0 0. 3. Onor abo utJan ua ry

29 , 20 04 , def

en da ntBOHDAN SENYSZYN prep ared , co- si gn ed , andfil eda Uni te d S ta te s In di vi du al In co m e Tax Return, Fo rm 10 40 , forhi m se lf a ndhi s wi fe, wh o a ls o si gn edth e return. Th atjoi ntreturn d ecl ared$7 8,1 15 .80 inwage s an d sa la rie s as th ei r on ly inc om e, an d s tate d t ha t the am ou ntof t ax du e an d owi ng was $ 0. 4. Th e return d idno t i nc lu de ab ou t $ 25 2,7 26 .00 inad di ti on al ta xabl e in co m e th atde fen da ntBOHDAN SENYSZYNem be zzl edin 20 03 fro m

th e sa le of Lo t 7 2. Up on th is ad di ti on al in co m e, an ad di ti on al tax of abo ut$8 5,0 16 .27 was due an d o win g t o t he Uni te d St at es . 5. Onor abo utJan ua ry 29 , 20 04 , inth e Dis tri ctof Ne w Jer se y , an d e ls ewh ere, d efen da ntBOHDAN SENYSZYNkn owi ng ly and wil lfu ll y di d a tt em

ptto ev ad e an d d efea t a s ub st an ti al part o f th e in co m e ta x due an d o win g b y hi m to th e Uni te d S tate s fo r th e cal en da r y ear 2 00 3 i n t ha t h e si gn ed , fil edan d c au se d t o b e fi le d afal se an d- 6 -

[* 6] frau du le ntUni te d S ta te s In di vi du al Inc om e Tax Return, Fo rm 10 40 , as d es cri be d i n p arag rap h 3 , kn owi ng itto be fal se an d frau du le ntas d es cri be d i n p arag rap h 4 . In v io la ti on of Ti tl e 2 6, Uni te d S ta te s C od e, Sect io n 7 20 1. Co nt em po ran eo us with t he U.S. att orne y 's fi li ng th e supe rs ed in g in fo rm at io n, M r. Sen y sz yn s ig ne d apl ea ag reem en t wi th hi m , inwhi chMr. Sen y sz yn a gr eedto pl eadgu il ty to the ab ov e-s et -fo rth co un t 2 (i.e ., "ta x e va si on for [th e] tax y ear 2 00 3 i n v io lati on of s ec. 7 20 1" ). He ag reedto st ip ul at e at
se nt en ci ng : "B OHDAN SENY SZYN kn owi ng ly andwil lfu ll y di d n otin cl ud e ab ou t $ 25 2,7 26 .00 inad di ti on al tax ab le in co m e th athe acqui redin20 03 . Upo n th is ad di ti on al in co m e, anad di ti on al tax of abo ut$8 5,0 16 .27 was due an d o win g t o th e Uni te d S ta te s." On Se pt em

be r 20 , 20 07 , Mr. Sen y sz y n e nt ereda pl ea o f gu il ty to al l o f th e ch arg es setforth inth e supe rs ed in g i nf orm at io n, i nc lu di ng th e ch arg e o f ta x ev as io n. Du rin g t he pl ea co ll oquy, Mr. Sen y sz yn was ask edwhet he r he was pl ead in g g ui lt y

to th e cri m es li st edinth e supe rs ed in g i nf orm at io n b ecau se he was, in fact , gu il ty. He res po nd ed , "Yes , I am ." Mr. Se nyszyn subs eque nt ly m ov edto withdraw h is gu il ty ple a, as se rti ng hi s in no cen ce as to whet he r a t ax was a ctua ll y du e o n t he m on ey

he fai le d t o re po rt i n 20 03 . The Di st ric t Co urt d en ie d t he m ot io n, an d o n F eb ru ary 25 , 20 08 , iten te red- 7 -

[* 7] jud gm en t p ur su an t t o t he pl ea. Mr. Se nyszyn ap pe al edth e d en ia l o f hi s
m ot io n t o wi th dr aw th e g ui lty pl ea, an d t he U.S. Court o f App eal s fo r th e Thi rd Ci rcu itaffi rm edth e d en ia l. See Uni te d S ta te s v . Sen y sz yn, 3 38 Fed . App x. 2 01 (3d Ci r. 20 09 ). Mr. Sen y sz y

n fi le d am ot io n t o v acat e, se t as id e, or co rrec t h is
se nt en ce, an d t ha t m ot io n was de ni ed , as wel l. See Sen y sz yn v . Uni te d S ta te s, No
. 2: 09 -cv -6 12 0 (D.N.J . fil edDec. 3, 2 00 9) . He di d n otfil e a d ire ctap pe al of h is cri m in al sen te nc e, an d h is co nv ic ti on ha s b eco m e fi na l. Fo ll owi ng Mr. Sen y sz yn's cri min al co nv ic ti on , res po nd en t ex am in ed pe ti ti on ers ' 20 03 Fed eral in co m e ta x re tu rnforth e p ur po se of d et erm in in g a ny de fic ie nc y

intax . The n ot ic e fo ll owe d, re sp on de ntm ak in g apo si ti ve ad jus tm en t t o pe ti ti on ers ' gr os s i nc om e o n a cco un t o f un rep orte d i nc om e o f $2 52 ,72 6. Dis cu ss io n I. Co ll at eral Est op pe l A. In tro du ct io n Und er the do ctrin e o f co ll at eral est op pe l, o r is su e p recl us io n, o nc e anis su e of factor l aw is "ac tu al ly andne ces sa ril y de te rm in edby a cou rt o f co m pe te nt juri sd ic ti on , th atde te rm in at io n i s co nc lu si ve insubs eque ntsu it s b as edon a di ffer en t caus e o f act io n i nv ol vi ng a pa rty to t he pri orli ti ga ti on ." Mo nt an a v . Uni te d S tate s, 4 40 U.S. 14 7, 1 53 (19 79 ) (ci ti ng Park la ne Hos ie ry Co . v. Sh or e, 43 9- 8 -

[* 8] U.S. 32 2, 3 26 n.5 (19 79 )). Co ll at eral est op pe l i s a ju di ci al ly creat edequi tabl e do ctrin e th e p ur

po se s o f whi chare t o p ro te ctpa rti es fro m un ne ces sary

an d redun da ntli ti ga ti on , to co ns erv e jud ic ia l re so ur ces , andto fos te r certa in ty in an d rel ia nc e o n ju di ci al act io n. Se e, e.g ., id . at 1 53 -1 54 ; Es ta te of C he m odur ow v . Co m m is si on er, T.C. Mem o. 2 00 1- 14 , 20 01 W L 55 77 4, at*7 . Befo re the ap pl ic at io n o f co ll at eral est op pe l i n t he co nt ex t o f a fac tu al di sp ut e, th e fo ll owi ng co nd it io ns m

us t b e sa ti sf

ie d: (1) th e is su e in th e se co ndsu itm us t b e id en ti cal inall
res pe ct s wi th th e o ne de ci de d i n t he fir stsu it ; (2 ) th ere m us t b e a fi na l ju dg m en t
ren de redby a cou rt o f co m pe te ntjuri sd ic ti on ; (3 ) co ll at eral est op pe l m ay be in vo ke d a ga in stpa rti es an d t he ir p riv ie s t o the pri orjud gm en t; (4) th e p art ie s m us t ha ve actua ll y

li ti ga te d t he is su es an d t he res ol ut io n o f th es e is su es m us t h av e b een es se nt ia l t o t he pri orde ci si on ; an d (5 ) th e co nt ro ll in g fa ct s an d app li cab le leg al
ru le s m us t re m ai n u nc ha ng edfro m th os e in th e p rio r li ti ga ti on . Peckv. Co m m is si on er, 9 0 T.C. 1 62 , 16 6- 16 7 (1 98 8) , aff'd , 90 4 F .2d52 5 (9 th Cir . 19 90 ). Eve n i f th e Pec k re qu ire m en ts are s at is fie d, h owe ve r, we have bro ad di sc ret io n t o d et erm in e whe n c ol la te ral est op pe l s ho ul d app ly, an d we m ay refu se to ap pl y itwher e, fo r in st an ce, i t i s t o b e ap pl ie d o ffen si ve ly, an d t he pa rty agai ns t who m itis ap pl ie d h adli tt le in cen ti ve to de fen d i n t he fir stact io n o r whe re the
se co ndact io n a ffo rd s the pa rty pro cedur al op po rtu ni ti es un av ai labl e inth e fi rs t- 9 -

[* 9] act io n t ha t co ul d re ad il y cau se a di ffer en t re su lt . See Parkl an e Hos ie ry Co ., 43 9 U.S. at33 0- 33 1; see als o M cQu ad e v . Comm is si on er, 8 4 T.C. 1 37 , 14 3 (1 98 5)
. B. App li cat io n 1. Unr ep orte d In co m e Res po nd en t ar gu es th atMr. Sen y sz yn's co nv ic ti on fortax ev as io n p recl ud es pe ti ti on ers fro m

de nyin g t ha t M r. Sen y sz yn re cei ve d $ 25 2,7 26 of unr ep orte d in co m e in20 03 . Relyin g o n An de rs on v. Co m m is si on er, 6 98 F.3d16 0 (3 d C ir. 20 12 ), aff'g T.C. Mem o. 2 00 9- 44 , res po nd en t as se rts th at"a d efen da nt 's a dm is si on in a gu il ty ple a fo r ta x e va si on th athe fai le d t o re po rt asp eci fic am ou ntof i nc om e on hi s t ax return p recl ud es th e d efen da ntfro m co nt es ti ng th atsu cham ou ntis ta xabl e to hi m

ina la te r pr oc eed in g." Res po nd en t ar gu es th atMr. Sen y sz yn's st ip ul at io n i n h is cri min al tax pro ceed in g t ha t h e "kno win gl y an d wi ll fu ll y

di d n ot in cl ud e ab ou t $ 25 2,7 26 .00 of a dd it io na l t ax ab le in co m e th athe acqui redin20 03 " pr ecl ud es hi m

fro m ch al le ng in g t he de fic ie nc y am ou nt . W e d is ag ree. Al th ou gh th e ex is te nc e o f anun de rp aym en t i n t ax is a ne ces sa ry ele m en t o f ta x e va si on un de r se ct io n 7 20 1, the de te rm in at io n o f anex act li ab il it y ev ad edis no t. See , e.g., Mo or e v . Uni te d S tate s, 3 60 F.2d35 3, 3 56 -3 57 (4 th Cir . 19 65 ); s ee al so Ferg us on v. Co m m is si on er, T.C. Mem o. 2 00 4- 90 , 20 04 W L 60 52 24 , at * 7. Ev enwher e th e ta xp ay er h as st ip ul at eda sp eci fic am ou ntof- 10 -

[* 10 ] un de rp aym en t i n agu il ty ple a, su chst ip ul at io n- -th ou gh stro ng ev id en ce o f th e d efi ci en cy

am ou nt --d oe s n otco ll at eral ly esto p t he tax pa y er fro m ch al le ng in g th atam ou ntina subs eque ntciv il pro ceed in g. Se e, e.g ., Ferg us onv. Co m m is si on er, 2 00 4 WL 60 52 24 , at * 7; see als o Li vi ng st on v. Co m m is si on er, T.C. Mem o. 2 00 0- 12 1, 2 00 0 WL 35 24 39 , at * 5. Res po nd en t's rel ia nc e o n An de rs onv. Co m m is si on er, 6 98 F.3d16 0, i s
m is pl aced . In An de rs on , th e Co urt o f App eal s fo r th e Thi rdCir cu itreas on edth at be cau se th e ta xabl e n atur e o f in co m e g en erat edby one of t he tax pa y er's co m pa ni es was ne ces sa ry

to est ab li sh th e ta xp ay er's co nv ic ti on un de r se ct io n 7 20 1, the ta xp ay er's co nv ic ti on di d h in ge on th e que st io n o f whe th er the in co m e was tax ab le
. Id . at 1 65 . There fo re, the tax pa y er was co ll at eral ly esto pp edfro m arg ui ng th atth at in co m e was no t t ax ab le to hi m ina subs eque ntciv il tax frau d p ro ceed in g. Id . The Co urt o f App eal s the n d et erm in edth e sp eci fic am ou ntof t he de fic ie nc y ; b utth at de te rm in at io n re li edno t o n t he pre cl us iv e eff ectof t he tax pa y er's co nv ic ti on , bu t
on st ip ul at io ns fil edwith t he Tax C ou rt dur in g t he co ur se of the de fic ie nc y pr oc eed in gs . Id. The sp eci fic am ou ntof the un rep orte d i nc om e was no t an ess en ti al ele m en t of Mr. Sen sz yn's tax ev as io n c on vi ct io n. Acco rd in gl y , Mr. Sen y sz yn's st ip ul at io n- 11 -

[* 11 ] in hi s cr im in al tax pro ceed in g d oe s n otco ll at eral ly esto p h im fro m ch al le ng in g re sp on de nt 's a dju st m en t fo r un rep orte d i nc om e in th is civ il pro ceed in g.

2. Sect io n 6 66 3( a) FraudPen al ty Sect io n 6 66 3( a) p ro vi de s: "If an y pa rt o f an y

un de rp aym en t o f ta x re qu ire d to be sh ownon a return i s due to frau d, the re s ha ll be ad de d t o t he tax anam ou nt equa l t o 7 5 p erce ntof t he po rti on of the un de rp aym en t wh ic h i s at tri bu tabl e to frau d." Res po nd en t b ears th e b ur de n o f pr ov in g fr au d b y cle ar an d c on vi nc in g ev id en ce. See sec . 74 54 (a); see als o R ul e 1 42 (b ). To s at is fy

th atbu rd en , res po nd en t m

us t s ho w: (1 ) anun de rp aym en t ex is ts ; an d (2 ) Mr. Se nyszyn in te nd ed to ev ad e ta xe s kno wn t o b e o win g b y co nduc t i nt en de d t o c on ceal , m is le ad , or ot he rwis e p rev en t the co ll ect io n o f ta xe s. E.g., Sa dl er v . Comm is si on er, 1 13 T.C. 99 , 10 2 (1 99 9)
. A con vi ct io n fo r ta x e va si on pu rs ua ntto sec ti on 72 01 , eit he r up on a gu il ty pl ea o r up on a jury verd ic t, co nc lu si ve ly establ is he s fr au d i n asubs eque ntciv il tax frau d p ro ceed in g t hr ou gh th e d oc tri ne of c ol la te ral est op pe l. E.g., DiLe o v . Co m m is si on er, 9 6 T.C. 8 58 , 88 5 (1 99 1) , aff'd , 95 9 F .2d16 (2dCir . 19 92 ); M arre tt a v. Co m m is si on er, T.C. Mem o. 2 00 4- 12 8, 2 00 4 WL 11 72 87 3, at*4 , aff'd , 16 8 F ed
. App x. 5 28 (3dCir . 20 06 ). Thatis be cau se th e el em en ts of c riminal tax ev as io n a nd ci vi l t ax frau d are v irtua ll y id en ti cal . See, e.g ., And ers on v. Co m m is si on er, 6 98- 12 -

[* 12 ] F.3dat 1 64 ; Will ia m s v . Comm is si on er, T.C. Mem o. 2 00 9- 81 , 20 09 W L 10 33 35 4, at*6
. Mr. Se nyszyn pl ead edgu il ty to t ax ev as io n u nd er s ect io n 7 20 1 fo r 20 03 , and th atjud gm en t h as be co m e fi na l. Pet it io ne rs do no t d eny th e co nv ic ti on , bu t ra is e a nu m be r of ob jecti on s t o t he ap pl ic at io n o f co ll at eral est op pe l. Pet it io ne rs ' arg um en ts th atth e n ot ic e was ba se d o n arep ort p rep aredby the IRS Cr im in al In ve st ig at io n Di vi si on whi le pu rs ui ng anin di ctm en t u nd er s ect io n 7 20 6( 1) , a ch arg e th atwas app aren tl y dro pp edby the ti m e Mr. Se nyszyn en te redhi s g ui lt y pl ea, are witho utm eri t. We do no t l oo k b eh in d ano ti ce o f de fic ie nc y to ex am in e th e ev id en ce u se d, the pro pr ie ty of th e Co m m is si on er's m ot iv es , or a dm in is tra ti ve po li cy or p ro cedur e u se d i n m ak in g tha t d et erm in at io n. Ca dwe ll v. Co m m is si on er, 13 6 T.C. 3 8, 4 8- 49 (20 11 ) (ci ti ng Greenbe rg 's Ex pr es s In c. v. Co m m is si on er, 6 2 T.C. 32 4, 3 27 (19 74 )), aff 'd, 4 83 Fed . App x. 8 47 (4t h C ir. 2 01 2) . Mor eo ve r, pe ti ti on ers ' cla im , eve n i f true , has no be ari ng on whet he r th e co nv ic ti on fortax
ev as io n u nd er s ect io n 7 20 1 c on cl us iv el y est ab li sh es th atMr. Sen y sz yn u nd erp ai d hi s 2 00 3 t ax li ab il it y

with fr au du le ntin te nt . Si m il arl y , pet it io ne rs ' ob

jecti on s tha t M r. Sen y sz yn was no t co nv ic te d o f "em be zzl em en t" are i rrel ev an t t o wh ethe r hi s co nv ic ti on un de r se ct io n 7 20 1
co ll at eral ly esto ps hi m

fro m co nt es ti ng th e ci vi l t ax frau d p en al ty. At i ss ue is on ly- 13 -

[* 13 ] whet he r anun de rp aym en t ex is te d fo r 20 03 an d wh ethe r pe ti ti on er p os se ss ed th e requi si te frau du le ntin te ntwith re sp ectto th atun de rp aym en t. Su chele m en ts
were es tabl is he d b y

pe ti ti on er's cri m in al co nv ic ti on . The s ou rce o f th atin co m e, to th e ex te ntth atitdo es no t af fectit s t ax ab le na tu re, i s i rrel ev an t fo r ou r pu rp os es . Pet it io ne rs ' arg um en t tha t al l o f th e p art ie s t o the pre vi ou s ac ti on m us t b e pr es en t fo r co ll at eral est op pe l t o a tt ach is witho utm eri t. Pet it io ne rs di rectus to no cas e es tabl is hi ng su cha requi rem en t, an d we a re awar e o f no ne . Mor eo ve r, itis cl ear t ha t, as be twee n re sp on de ntan d M r. Sen y sz yn, the re i s an id en ti ty of pa rti es in th is cas e an d i n t he cri m in al cas e, res po nd en t b ei ng inpri vi ty w it h t he Uni te d St at es (th e p la in ti ff i n the cri m in al cas e). E.g., Sh ah eenv. Co m mis si on er, 6 2 T.C. 35 9, 3 64 (19 74 ). Acco rd in gl y , pet it io ne rs are p recl ud edfro m ch al le ng in g re sp on de nt 's de te rm in at io n t ha t M r. Sen sz yn und erp ai d h is tax forth e 2 00 3 t ax y ear a ndth athe fil eda fal se an d fr au du le ntFed eral in co m e ta x re tu rnwith t he requi si te frau du le nt in te nt . Mr. Sen y sz yn i s the refo re l iabl e fo r th e se ct io n 6 66 3( a) fraudpe na lt y for th aty ear. As with the de fic ie nc y , ho wev er, the is su e o f th e am ou ntof t ha t p en al ty
rem ai ns fortri al . See s ec. 6 66 3( b)
.- 14 -

[* 14 ] II. Peri odof Li m it at io ns Sect io n 6 50 1( a) p ro vi de s, g en eral ly, th atth e am ou ntof a ny tax m us t b e as se ss edwithi n t hr ee years o f th e fi li ng of areturn. Se ct io n 6 50 1( c)(1 ), ho wev er, pr ov id es th at"[i ]n th e cas e o f a fal se or f rau du le ntreturn wi th th e in te ntto ev ad e ta x, the tax m ay

be ass es se d * * * at a ny tim e." Th e d et erm in at io n o f frau d fo r pu rp os es of s ect io n 6 50 1( c)(1 ) is th e sa m e as th e d et erm in at io n o f frau d fo r th e pu rp os es of t he pe na lt y

un de r se ct io n 6 66 3. Neel y v. Co m m is si on er, 1 16 T.C. 79 , 85 (20 01 ). In t he cas e o f in co m e ta x d efi ci en ci es on joi ntreturns , pro of of f rau d ag ai ns t ei th er s po us e p rev en ts th e ru nn in g o f th e p eri odof l im it at io ns as t o b ot h sp ou se s. Van na m anv. Co m mis si on er, 5 4 T.C. 1 01 1, 1 01 8 (1 97 0) ; Ev an s v . Co m m is si on er, T.C. Mem o. 2 01 0- 19 9, 2 01 0 WL 35 64 72 7, at*5 , aff'd , 50 7 F ed
. App x. 6 45 (9th C ir. 2 01 3)
. Bec au se we ha ve de te rm in edth atMr. Sen y sz y n fi le d afrau du le ntreturn fo r 20 03 , th e p eri odforass es sm en t re m ai ns op en . III. Co nc lu si on Res po nd en t h as sh own th athe is en ti tl edto su m m ary jud gm en t wi th res pe ct to th e is su e o f whe th er co ll at eral est op pe l ap pl ie s t o e st ab li sh Mr. Sen y sz yn's li ab il it y for civ il tax frau d fo r th e 2 00 3 t ax y ear, an d we h ol d a cco rd in gl y . W e furth er h ol d t ha t the st atut e o f li m it at io ns do es no t b ar as se ss m en t o f pe ti ti on ers ' tax- 15 -

[* 15 ] li ab il it y

forth aty ear. Th e is su es of t he am ou nt s o f th e d efi ci en cy intax an d th e p en al ti es for20 03 rem ai n fo r tr ia l. To re fle ctth e fo reg oi ng , An ap pr op ria te ord er wi ll be is su ed
.