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Collateral Estoppel In Civil Tax Fraud Cases Subsequent To Criminal Conviction, Michigan Law Review

Michigan Law Review

To secure compliance with federal income tax laws, Congress has provided both criminal and civil penalties. Fines and imprisonment are imposed under section 7201 of the Internal Revenue Code if the Government can prove beyond a reasonable doubts a willful attempt to evade or defeat taxation. Section 6653(b) authorizes, as a civil sanction, a fifty per cent addition upon findings by the Commissioner of fraudulent underpayment. These findings, if challenged by the taxpayer, need only be sustained by a preponderance of the evidence. Because of the similarity between the acts condemned by sections 7201 and 6653(b), conviction under section 7201 …