Joseph Banister v. United States Dept. Of the Treasury

MEMORANDUM

Plaintiff-Appellant Joseph R. Banister appeals from the decision of the United States District Court for the Northern District of California affirming the Secretary of the Treasury’s decision to disbar Banister from practice before the Internal Revenue Service (IRS). Banister admitted to advising clients that they were not liable for income taxes based on his belief that the Sixteenth Amendment was not properly ratified and his understanding that Section 861 of the Internal Revenue Code, 26 U.S.C. § 861 , and the regulations thereunder (“Section 861”) exempted the clients from having to pay income taxes. He also admitted to signing a client’s tax returns as the returns’ preparer when the returns, stated that the client was not liable for income taxes under Section 861. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We affirm.

Banister alleges first that the administrative law judge (ALJ), in a decision upheld by the Secretary of the Treasury, erred in determining that Banister’s conduct was willful, and disregarded evidence that was relevant to this determination. We find no error. Even if a good faith belief in an incorrect understanding of tax law can serve as…