United States v. Ross Huebner, United States of America v. John Williams

OVERVIEW

Ross Huebner was convicted of ten counts of aiding and abetting three people in the attempted evasion of payment of their income taxes for various years, 18 U.S.C. § 2 , 26 U.S.C. § 7201 . Huebner and John Williams were also convicted of conspiracy to commit the attempted evasion offense and to defraud the United States by obstructing collection of income taxes. 18 U.S.C. § 371 .

The principal issues are (1) whether the filing of a petition in bankruptcy for the purpose of causing an IRS levy on one’s wages to be released can constitute an attempt to evade or defeat one’s income tax or the payment thereof under 26 U.S.C. § 7201 , and (2) whether a conspiracy to cause the release of an IRS levy on people’s wages by having them file petitions in bankruptcy containing false statements of indebtedness can constitute a conspiracy to defraud the IRS by obstructing its collection of income taxes owed by those people, under 18 U.S.C. § 371 .

These convictions arose out of the participation of Huebner and Williams in the activity of John Freeman in assisting numerous taxpayers (tax protesters) whose income taxes the IRS was trying to collect. Freeman was also indicted, but was…

dissenting in part and concurring in part.

I dissent from part 1 of the opinion of the court. I concur in the balance of the opinion.

The opinion accurately characterizes the “taxpayers” as “tax protesters”. It might have further characterized them as “tax resisters”, as well. These “taxpayers” were typically wage earners whose sole income was devised from wages.

The majority disagrees with the district court in its conclusion that Huebner was guilty of count 1, the count alleging an attempt to evade or defeat income tax liability. It points to the fact that a scheme such as that presented here was held in Edwards v. United States, 375 F.2d 862, 867 (9th Cir.1967) to be merely a postponement of disclosure or payment, not an intent to deprive the government of its tax revenue.

I think this conclusion is in error. The filing of fraudulent bankruptcy forms had the immediate effect of releasing wages seized by the IRS to the “taxpayer”. Such a release effectively “evaded” the prompt and just payment of the taxes seized. That the tax remains payable is of little present concern: the next effort to collect taxes can be met with similar acts of evasion. In my view, Huebner was guilty…

16 F.3d 348 73 A.F.T.R.2d 94 -1187, 62 USLW 2548 , 94-1 USTC P 50,093 UNITED STATES of America, Plaintiff-Appellee, v. Ross HUEBNER, Defendant-Appellant. UNITED STATES of America, Plaintiff-Appellee, v. John WILLIAMS, Defendant-Appellant. Nos. 92-10543, 92-10577. United States Court of Appeals, Ninth Circuit. Argued and Submitted June 16, 1993. Decided Feb. 10, 1994. John G. Watkins, Las Vegas, Nevada, and Susan N. Wasko, Las Vegas, Nevada, for the defendants-appellants. Robert E. Lindsay, Alan Hechtkopf and Karen Quesnel, United States Department of Justice, Tax Division, Washington, D.C., and Karen Moss and Steven Ward, Las Vegas, Nevada, for the plaintiff-appellee. Appeals from the United States District Court for the District of Nevada. Before: FAIRCHILD, * BEEZER and WIGGINS, Circuit Judges. FAIRCHILD, Senior Circuit Judge: OVERVIEW 1 Ross Huebner was convicted of ten counts of aiding and abetting three people in the attempted evasion of payment of their income taxes for various years, 18 U.S.C. Sec. 2 , 26 U.S.C. Sec. 7201 . Huebner and John Williams were also convicted of conspiracy to commit the attempted evasion offense and to defraud the United States by obstructing…