United States v. Terrence Dean Oaks

Terrence Dean Oaks is a leading member of a tax rebellion group. On January 30, 1974 he was convicted in a jury trial of failing to file his 1971 income tax return (Form 1040) in violation of 26 U.S.C. § 7203 and of filing a false 1971 withholding certificate (W-4 Form) in violation of 26 U.S.C. § 7205 . On appeal Oaks’ conviction was remanded for an evidentiary hearing to determine whether he had been the subject of discriminatory prosecution. United States v. Oaks, 508 F.2d 1403 (9 Cir. 1974). Following remand the district court held an evidentiary hearing and found that Oaks “was not the victim of impermissible discriminatory prosecution” and reaffirmed the judgment of conviction. On this appeal Oaks contends that the district court erred in this finding and also raises as an additional issue the propriety of undercover activities conducted by the I.R.S. agents.

The facts behind Oaks’ conviction are uncontested. In January, 1971 he filed a Form 843 for refund of taxes withheld from his pay, claiming that the taxes had been collected in violation of the Constitution. In April, 1971 Oaks filed his Form 1040 omitting all of the information required by the return except…