T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T UN I T E D S T AT E S OF AME R I C A, P l ai nt i ff

- A pp el l ee , v. K RI STI N W . H A Y N ES, D e f

e n d a n t - A p p e lla n t. N o. 10- 30344 D . C . N o. 2: 10 -c r- 00 03 4-JL Q -1 ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f orthe E a s t e rn D i s tr i c tof W a s hi ngt on J us t i n L . Q ua c ke nbus h, S e ni orD i s tr i c tJ udge , P r e s i di ng

A r gue d a nd S ubm i tt e d J une 9, 2011 S e a tt l e , W a s hi ngt on B efo re: R E IN H A R D T , W . F L E T C H E R , an d R A W L IN S O N , C i rcu i tJu d g es. K r i s t i n W . H a y ne s appe a l s he rs e nt e nc e of 24 m onths ’ i m pr i s onm e nt fol l ow i ng her gui l ty pl eat o fou r c ou nt s of f ai l ure t o fi l e an i ncom e t ax re turn u nd er 26 U . S . C . § 7203. H a y ne s a s s e rt s tha tthe di s tr i c tc ourtc om m i tt e d pr oc e dur a l e rr or in its c a lc u la tio n o f

h e rb a s e o f

f e n s e le v e l b ya c c e p tin g th e g o v e rn m e n t’s e s tim a te



# FI LED JU L 08 2011 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2

o f ta x lo s s a ttr ib u tab le to h e ra n d th a t th e c o u rt e rr e d in f a ilin g to p r o v id e a d e q u a te r e a s oni ng t o s upporti t s s e nt e nc i ng de c i s i on. 1. T ax L os s M e t h od H a y n e s a s s e rts th a t th e d is tr ic t c o u rt c o m m itte d p r o c e d u r a l e rr o rb yf a ilin g to use the t ax l oss m etho d p rovi ded for i n the S ent enci ng G ui del i nes, and i nst ea d r e ly in g o n th e g o v e rn m e n t’s “d ir e c t m e th o d ” c a lc u la tio n s .

“ I f the of f e ns e i nvol ve d f

a i l ur e t o f

i l e at a x r e turn, the t a x l os s i s the a m ount of t a x tha tthe t a xpa y e row e d a nd di d notpa y . ” U . S . S . G . § 2T 1. 1( c ) ( 2) . “ I f the o f f e n s e in v o lv e d f

a ilu r e to f

ile ata x r e tu rn , th e ta x lo s s s h a ll b e tr e a te d a s e q u a l to 20 % of the gross i ncom e . . . l es s any t ax w i thh el d o r otherw i se pai d, un l es s am ore ac cura t e det erm i nat i on of the t ax l oss c an be m ade. ” U . S . S . G . § 2 T 1. 1(c) (2)( A ). T h e d i stri ctco u rt ’ s accep t an ce o f th e g o v ern m en t ’ s cal cu l at i o n o f t ax l o ss, w hi ch w as supp ort ed by an IR S agent ’ s t es t i m on y and nu m er ou s t abl es d e m o n s tr a tin g H a y n e s ’s ta x ab le in c o m e a n d ta x e s o w e d , w a s n o t c le a r lye rr o n e o u s . See U n i ted S ta tes v. G a rro , 517 F . 3d 1163, 1167 ( 9th C i r . 2008) ( “ A c a l c ul a t i on of th e a m o u n t o f

lo s s is af

a c tu a l f in d in g r e v ie w e d f

o rc le a re rr o r .” ) . T h e d is tr ic t c o u rt d id n o t c le a r lye rrin a c c e p tin g th e s e c a lc u la tio n s , d e s p ite the go vernm ent ’ s f

ai l ure t o cal cul at e any dedu ct i on s or e xp ense s t o w hi ch H ay nes m a yh a v e b e e n e n title d h a d s h e f ile d a n n u a l ta x r e tu rn s . See U n ite d S ta te s v . Y

ip ,3

59 2 F . 3d 10 35 , 10 41 (9th C i r. 20 10 ) ( “ W e hol d that§2 T 1. 1 d oes notent i t l e a d e f e n d a n t to r e d u c e th e ta x lo s s c h a r g e d to h im b yth e a m o u n t o f p o te n tia lly l e gi t i m a t e , butunc l a i m e d, de duc t i ons e ve n i f thos e de duc t i ons a r e r e l a t e d t o the o f f e n s e .” ) . 2. E xp l an ati on of S en te n ce H a y ne s c ont e nds tha tthe di s tr i c tc ourtc om m i tt e d pr oc e dur a l e rr orbynot ad eq u at el y ex p l ai n i n g i t s t ax l o ss an d g u i d el i n es cal cu l at i o n s. T he di stri ctcourtdi d n otcl earl y e rrby fa i l i ng t o p rovi de any a dd i t i on al e xpl a na t i on f

ori t s ut i l i z a t i on of

the “ di r e c tm e thod” of

t a x l os s c a l c ul a t i on. See U n i ted S ta tes v. C o lu ssi , 22 F . 3d 21 8, 22 0 (9th C i r. 19 94 ) ( “ T he di stri ctcourtneed no tst at e r ea sons for i t s f ac tual fi nd i ng s, w hen i tm akes a f ac tual fi nd i ng , and there ar e no p re di ca t e i ss ues of f ac tcont es t ed bu tno tre sol ved. ”) (c i t at i on om i tt ed). T he di s tr i c tc ourtde t e rm i ne d the c orr e c tgui de l i ne s r a nge , a c know l e dge d the gu i del i nes are advi soryand exp l i ci t l y c on si dere d the § 3 55 3(a) fa ct ors. T here w as n o p r o c e d u r a l e rr o r . Se e U n ite d S ta te s v . R in g

g o ld , 57 1 F . 3d 94 8, 95 0 (9th C i r. 20 09 ).

AF F I RME D.4