United States v. Walter D. Brodie, United States of America v. Nancy A. Brodie

I.

Walter Brodie and his wife Nancy Brodie appeal their convictions under 26 U.S.C. § 7203 (1982 & Supp. II 1984) for willful failure to file income tax returns. We affirm.

Walter Brodie is a doctor and Nancy Brodie is a registered nurse. Between 1970 and 1986, they operated a medical practice together in the Reno/Lake Tahoe area. Nancy Brodie worked full time as a nurse for the medical practice during 1979 and 1980 while simultaneously serving as its accountant and bookkeeper. In 1979, Taxpayers earned more than $75,873 from their medical practice. In 1980, they earned more than $116,554.

Neither of Taxpayers has filed a federal income tax return since 1971. In 1972, Taxpayers sent the Internal Revenue Service a Form 1040 on which they had written “unknown” in all the spaces calling for financial information.

In 1977, the Taxpayers were prosecuted for failing to file their federal income tax returns for the tax years 1972 and 1973. At trial, they maintained that they did not have to file returns because federal reserve notes were not legal tender. They were both convicted and each received a six-month jail sentence. Their convictions were later affirmed on appeal by this…