Lowry v. Commissioner

Summary

The United States Tax Court dismissed petitioners' challenges to federal income tax deficiencies after they and their counsel failed to appear at scheduled trial dates and failed to respond to an order to show cause. The court held that Roy W. Lowry was collaterally estopped from denying fraud based on his conviction for income tax evasion and entered decisions for the deficiencies and fraud additions against him, while conceding the additions as to Ruth E. Lowry.

Holdings

1. A taxpayer's failure to appear at scheduled trials and failure to respond to an order to show cause justified dismissal of the issues concerning the correctness of the determined deficiencies.
2. Roy W. Lowry was collaterally estopped from denying fraud for the tax years at issue.

Questions Presented

1. Whether the deficiency issues should be dismissed because petitioners failed to appear for trial and failed to prosecute the case.
2. Whether Roy W. Lowry was collaterally estopped by his criminal conviction from denying fraud for purposes of the additions to tax under section 6653(b).

Disposition

dismissed