Opinion ID: 659920
Heading Depth: 2
Heading Rank: 3

Heading: Secondary Civil Tax Proceedings

Text: 4 On December 11, 1989, the IRS issued a notice of deficiency to Wolf, recalculating his taxable income for 1983 to include the seized cash and treating the value of the seized cocaine and marijuana as taxable income from self-employment. The IRS also asserted that Wolf was liable for negligent failure to report taxable income and for substantial understatement of tax. 5 On March 9, 1990, Wolf filed a petition in Tax Court challenging the deficiency and additions. Wolf offered the testimony of Vicki Smith (nee Toms) to the effect that, contrary to Agent Brawner's affidavit, she never admitted anything. Wolf argued that Agent Brawner's statement that Toms admitted that she had picked up cocaine at an address near Xenia was perjurious. Wolf then argued that, because the affidavit contained a perjurious statement, the subsequent search violated his rights under the Fourth Amendment. Accordingly, Wolf argued, evidence seized during the search should have been excluded from the tax deficiency proceeding. Because the second affidavit and second search followed from the first allegedly unconstitutional search, Wolf argued further, evidence from the second search should also have been excluded as fruit of the poisonous tree. Nardone v. United States, 308 U.S. 338, 341, 60 S.Ct. 266, 267, 84 L.Ed. 307 (1939). 6 The Tax Court, Judge Beghe, assumed for the purpose of argument that Wolf's Fourth Amendment rights were violated. 1 The Tax Court found that the exclusionary rule did not apply, however, because the rationale of the exclusionary rule, deterrence, would not be served in this case. Accordingly, the Tax Court admitted evidence of the seized cocaine, marijuana, and cash. On August 31, 1992, the Tax Court entered its decision finding Wolf's 1983 taxes to be deficient and imposing additions to the tax. Wolf filed a timely notice of appeal on November 27, 1992.