United States v. Franklin L. McNulty

Appellant, an Irish Hospital Sweepstakes winner, set for himself and successfully navigated a firm course leading to the shoals and rocks of a guilty verdict.

Prosecution was under a single count indictment charging appellant with willfully attempting to evade and defeat a tax on income received during 1973, and the payment thereof by concealing or attempting to conceal his true income, in violation of 26 U.S.C. 7201. The conviction is affirmed.

In March of 1973 McNulty was advised of his good fortune and confided in several friends that he did not intend to pay any income tax on his winnings. On three occasions McNulty consulted I.R.S. personnel with regard to his tax liability on estimated winnings of $130,000.00. On each occasion he was advised of the approximate tax liability and that leaving the money in Ireland would not eliminate his accountability and the tax. In late May, 1973, McNulty traveled to Ireland, picked up his winnings and then stopped at St. Helier in the Channel Islands and deposited approximately $125,-000.00 and brought $3,000.00 back with him to the United States. Prior to and at the time of the deposit McNulty knew that the Channel Islands had…