Opinion ID: 608149
Heading Depth: 2
Heading Rank: 2

Heading: Proceedings Before The Tax Court

Text: 18 Prior to trial the Blohms moved to strike Ritchey's testimony and to supplement the record. The government moved for relief from the binding effect of the parties' stipulation of facts. The Tax Court denied the Blohms' motion to strike Ritchey's testimony but granted their motion to supplement the record. The Tax Court denied as premature the government's motion for relief from the stipulated facts. 19 At trial the government renewed its motion for relief from the binding effect of certain stipulations of fact because the evidence did not support those stipulations. Specifically, stipulation twenty-two incorrectly averred that the $1,289,412.50 transferred from Marion to the account of Marion Coal occurred on February 19, 1981. The record demonstrated that the correct date was one day earlier, February 18, 1981. Noting that it was not bound by facts contrary to evidence in the record, Kirchner, Moore & Co. v. Commissioner, 54 T.C. 940, 1970 WL 2264 (1970), aff'd, 448 F.2d 1281 (10th Cir.1971), the court granted the motion as to stipulation twenty-two. It denied the motion as to other challenged stipulations. 20 The Tax Court upheld the deficiency determination. Blohm v. Commissioner, 62 T.C.M. (CCH) 1586, 1991 WL 271600 (1991). It determined that (1) Blohm earned the Cayman Islands kickback by arranging Marion's purchase of the Jourdanton Prospect leases and that the kickback was therefore taxable income; (2) Blohm derived $125,767 in unreported income from the Kitchen Table kickback; and (3) Blohm was collaterally estopped from denying liability for the additional tax for fraud under 26 U.S.C. § 6653(b) because of his guilty plea to tax evasion under 26 U.S.C. § 7201. The Tax Court denied the Blohms' motion to vacate or revise its decision and their motion for reconsideration of findings and opinion. 8 The Blohms perfected this appeal. 9