Opinion ID: 158730
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: 2 Defendants were indicted by a grand jury on one count of conspiracy to defraud the United States by assisting in the preparation of false tax returns, in violation of 18 U.S.C. 371, and on seventy counts of aiding and assisting in the filing of false tax returns, in violation of 26 U.S.C. 7206(2). The conspiracy count alleges that Defendants operated an organization known as Association de Libertas (ADL) that conducted constitutional history seminars throughout the United States. It further alleges that ADL leaders falsely told the seminar attendees that they were nonresident aliens exempt from most federal income taxes. For a fee of $1,500 to $1,600 for forms training, ADL instructors taught the attendees how to complete an amended return form (Form 1040X) and/or a nonresident alien income tax return form (Form 1040NR), falsely claiming a refund for past years' taxes. In addition to the above fee, ADL also required one-third of any refund. To ensure payment, the mailing address of an ADL instructor or escrow agent appeared on the amended returns. The false return counts allege that the Defendants assisted in preparation of tax returns that were false and fraudulent as to a material matter, specifically classifying the taxpayers as nonresident aliens when the taxpayers were in fact residents of the United States subject to taxation and not entitled to the refunds claimed. 3 Defendants filed motions to dismiss the indictment on various grounds. In pertinent part, Defendants argued that under 26 U.S.C. 7422 and Cheek v. United States, 498 U.S. 192 (1991), they have a right not to be tried for violation of tax laws when they simply urged compliance with a lawful method for challenging the government's interpretation of the tax laws. The district court was not persuaded.