In Uncategorized on 06/30/2022 at 14:50

William Joseph Davidson, Docket No. 5849-09, filed 6/30/22 (and that docket number is no typo, this is an oldie but goodie) is back home (see my blogpost “Be Back Home in Thirty Days,” 6/27/19). But is precluded from claiming (a) he doesn’t owe north of $418K in tax for 1998, (b) he didn’t willfully evade payment of tax on $200K for 2001, and (c) he doesn’t owe Section 6651(f) add-ons in respect of the said years.

Judge Colvin has the story. And uses the old-fashioned term “collateral estoppel,” which now is translated as “claim preclusion.”

Wm Joseph copped a plea in USDCEDMO on the tax due for 1998 and the evasion in 2001. IRS wants summary J, now that Wm Joseph is out of the slammer.

“Collateral estoppel applies here because the matters at issue here are identical with the ones decided in petitioner’s criminal case, Davidson v. United States of America, U.S. District Court for the Eastern District of Missouri, docket number 4:05CR00519; a final judgment was rendered by a court of competent jurisdiction in that case; respondent is in privity with the United States; the parties actually litigated the matter at issue and the resolution of those matters was essential to the prior decision; the controlling facts and legal principles have not changed; and there are no special circumstances that would warrant making an exception to the normal rules of issue preclusion. A guilty plea is treated as the prior litigation of an issue of fact or law.” Order, at p. 4. (Citations omitted).

This isn’t like the restitution cases, where restitution is determined but the exact tax, add-ons, and chops is not, and the plea bargain says so. Here Wm Joseph copped to the exact amounts.

But whatever else IRS wants is held in abeyance. No need to rush matters.


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