Dixon v. Commissioner Of Internal Revenue

316 F.3d 1041 Jerry A. DIXON, Hoyt W. & Barbara D. Young, Robert L. & Carolyn S. Du Fresne, Terry D. & Gloria K. Owens, Richard & Fedella Hongsermeier, et al., Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. No. 00-70858. United States Court of Appeals, Ninth Circuit. Argued and Submitted October 10, 2002. Filed January 17, 2003. Henry Binder, John A. Irvine, Porter & Hedges, Houston, Texas, for appellants Dixon, DuFresne, and Owens. Michael Louis Minns, Houston, Texas, for appellants Hongsermeier. Joe Alfred Izen, Jr., Bellaire, Texas, for appellant Young. John Dudeck, Tax Division, U.S. Department of Justice, Washington, D.C., for the appellee. Appeal from a Decision of the United States Tax Court. IRS Nos. 29643-86, 30979-85, 30010-85, 22783-85, 40159-84, 15907-84, 4201-84, 9382-83. Before D.W. NELSON, HAWKINS and WARDLAW, Circuit Judges. OPINION MICHAEL DALY HAWKINS, Circuit Judge. "Truth needs no disguise." 1 1 We must decide whether the Tax Court's finding of a pattern of government misconduct amounts to a fraud on the court and, if so, whether such a fraud requires a showing of prejudice to justify relief. We conclude that the…