United States v. Richard Lyle Kelley

Kelley appeals from his conviction after a jury trial on two counts of willfully supplying false information on withholding exemption certificates in violation of 26 U.S.C. § 7205 . He raises three principal issues. First he argues that he had a right to be represented by a non-lawyer. He next contends that he did not incur income tax liability since he was not paid in lawful dollars. Finally he asserts that the district court erred in its instruction to the jury on willfulness. We affirm.

Kelley apparently believes that since Federal Reserve notes are not redeemable in gold or silver, they are not “dollars.” Thus, the argument goes, one who receives his income in paper dollars receives no dollar income upon which he can be taxed. Kelley filed a return for 1973, but it contained no financial information other than the amount withheld from his wages. The IRS district director notified Kelley in May 1974 that his return was unacceptable. Kelley replied in June 1974 that he did not “receive any dollars as income for the year 1973.” Kelley also enclosed amended returns for 1971 and 1972 requesting a refund of all taxes paid based upon the same reasoning. He was employed as a…