Tax News

CCH (cch.taxgroup.com) reports:

  An individual's conviction for tax evasion was reversed because the indictment was constructively amended at trial. The grand jury indictment of the individual specifically charged her with willful failure to pay a medical clinic's employment taxes. However, at trial, the government's own witness testified that the individual was not the employer and was not responsible for paying the employment taxes. In order to save its case, the government argued that the term "employment taxes" included the trust fund recovery penalty (TFRP), which had been assessed against the individual personally and that she had failed to pay.

  The government's argument unconstitutionally broadened the basis for convicting the individual because the government never obtained a grand jury indictment of the individual for failure to pay the TFRP. Contrary to the government's argument the terms employment taxes and TFRP were not interchangeable terms. Liability for employment taxes extends only to employers, while liability for the TFRP extends to any responsible person. Therefore, absent a proper amendment to the indictment by the grand jury, the government was not free to prove any other tax liability at trial.

  Reversing and remanding an unreported DC Okla. decision.

S.T. Farr, CA-10, 2008-2 USTC ¶50,516

Other References:

 
Code Sec. 7203

  CCH Reference - 2008FED ¶2900.35

  CCH Reference - 2008FED ¶41,318.247

  Tax Research Consultant

  CCH Reference - TRC IRS: 66,060.10
CCH Reference - TRC IRS: 66,108.10