In Re Lowell H. Becraft, Jr. United States of America v. Kenneth W. Nelson

ORDER

In February 1988, Kenneth Nelson was convicted in the United States District Court for the District of Nevada on three counts of failure to file income tax returns in violation of 26 U.S.C. § 7203 . Nelson, represented by counsel Lowell H. Becraft, Jr., then appealed to this court claiming, inter alia, that the district court erred in refusing to give his proposed jury instruction that a United States citizen residing in the United States is not subject to the federal income tax laws.

By memorandum disposition dated March 22, 1989, this court affirmed Nelson’s conviction, noting that Becraft’s argument regarding the inapplicability of the federal tax laws to resident United States citizens had no basis in law. Becraft thereafter filed a petition for rehearing and/or suggestion for rehearing en banc [hereafter “petition for rehearing”]. In the petition for rehearing, Becraft once again argued that the federal tax laws are inapplicable to resident United States citizens.

Upon receipt of the petition for rehearing, we, sua sponte, issued a show cause order requesting Becraft to explain why damages in the sum of $2500 should not be assessed against him for filing a frivolous…