Opinion ID: 1323858
Heading Depth: 1
Heading Rank: 3

Heading: The Tax Returns

Text: Gaillard argues the district court abused its discretion when it admitted evidence of his supplemental tax returns, which he filed after the accident.
The district court's decision to allow evidence of Gaillard's tax returns to be admitted and utilized at trial is reviewed for abuse of discretion. Harris v. Chand, 506 F.3d 1135, 1139 (8th Cir.2007). We will not reverse absent a showing that the ruling had a substantial influence on the jury's verdict. Id.
After the accident, Gaillard filed supplemental tax returns changing his reported income to a higher figure. Defendants used the returns to impeach the credibility of Gaillard and his expert witness. Gaillard argues because his expert did not rely on the returns when estimating his future income loss, the returns were not relevant. He further argues, under Federal Rule of Evidence 403, any probative value was substantially outweighed by the prejudicial effect. See Fed.R.Evid. 403. He contends Defendants used the information to improperly incite the jury into punishing him for being a liar and a cheat. We find Gaillard's tax returns highly relevant to the defense of this case. First, past income as established by tax returns is highly relevant to a loss of income claim. Second, the tax returns were probative of his character for untruthfulness and thus relevant to keeping any damage award to a reasonable and fair level. See Fed R. Evid. 608(b). The returns were offered to attack the credibility of his testimony regarding loss of income and the extent and severity of his injuries. They were also relevant to impeach the credibility of Gaillard's economic expert, who testified he typically relies upon an individual's income tax return as the most reliable source of wage verification, yet ignored Gaillard's untrustworthy returns. The district court properly found when Gaillard presented evidence to suggest he suffered a loss of income, he opened the door for Defendants to produce evidence to contradict his claims. See Halladay v. Verschoor, 381 F.2d 100, 113 (8th Cir.1967) (income tax returns may be treated as a prior inconsistent statement and may be used to impeach witness as to amount of loss). It matters not that Gaillard's expert did not rely on the returns. The district court properly found the tax returns were admissible as impeachment evidence under Rule 608(b), which allows the court in its discretion to allow cross examination of witnesses regarding specific instances of a witness's own conduct if the past experiences are probative of a character of untruthfulness. (5/14/2007 Order Denying Motion To Exclude Tax Returns, at 2) (citing United States v. Beal, 430 F.3d 950, 956 (8th Cir.2005); Fed.R.Evid. 608(b)).