United States v. Roy G. Powell Dixie Lee Powell

Roy and Dixie Lee Powell appeal their jury convictions for the willful failure to file income tax returns in violation of 26 U.S.C. § 7203 . The dispositive issues are whether the district court erred in its jury instructions and in limiting evidence that the Powells could present. More specifically, we address whether the district court erred in (1) its instruction on willfulness, (2) refusing to allow an instruction on jury nullification, (3) instructing the jury that a federal statute did not relieve the Powells of their obligation to file an income tax return, and (4) refusing to allow the Pow-ells to present evidence of existing law as relevant to their intent at the time of the offense. We reverse and remand for a new trial.

FACTUAL AND PROCEDURAL BACKGROUND

On March 8, 1989, the government filed an indictment charging Roy and Dixie Powell with willful failure to file income tax returns in violation of 26 U.S.C. § 7203 during tax years 1982, 1983, and 1984. Each of the Powells separately had gross incomes in excess of $5,400 in those years. Thus, under federal law, they were required to file a tax return. 26 U.S.C. § 6012 (a) (1982 ed.) (amended 1986). The Powells failed…