United States v. Charles Richard Haller

Appellant Haller appeals his conviction of willfully failing to file income tax returns for the years 1967, 1968, and 1969, in violation of 26 U.S.C. § 7203 . We affirm.

1. Appellant contends that, since he was charged only with failure to file and not with failure to pay, the district court erred in permitting the government to introduce evidence of an increase in appellant’s net worth for the years 1966 through 1972.

Appellant conceded that he knew the tax was due. His defense was that his failure to file was not willful because he was unable to pay the tax and thought he could not file a return without tendering the tax. In view of this defense, evidence of appellant’s net worth was admissible to rebut appellant’s contention that he was unable to pay. United States v. Rosenfield, 469 F.2d 598, 600 (3rd Cir. 1972). The fact that the increase in appellant’s net worth may have been due to appreciation, gifts, and other nontaxable or unrealized income did not make the net worth statements any less probative on this issue. United States v. Walker, 479 F.2d 407, 408-09 (9th Cir. 1973), is therefore distinguishable. Walker’s defense was not that he could not pay, but rather that he…