Opinion ID: 583599
Heading Depth: 3
Heading Rank: 5

Heading: Jury Instructions on Affirmative Acts

Text: 62 Alternatively, McGill argues that the jury instructions on affirmative acts were faulty on several grounds, and for this reason he requests that we grant him a new trial. He contends, first, that the initial instructions were misleading--they suggested to the jury that a mere failure to pay taxes could constitute an affirmative act of evasion. Subsequent amplification by the court allegedly did not cure this fault. Second, McGill asserts that the charge did not include any affirmative acts of evasion relating to Counts 7 and 8 (1986 and 1987 tax years). The 1986 and 1987 taxes were delinquent as of May 15, 1988, the day the returns for both years were filed, and the only evasive behavior mentioned in the charge occurred prior to that date. Third, the judge instructed the jury that evasion of payment of tax was complete at the time a tax return is filed, while the Government's case focused on behavior subsequent to each filing. 63 We review jury instructions only to discern whether they are an accurate representation of the law. See United States v. Santos, 932 F.2d 244, 247-50 (3d Cir.), cert. denied, --- U.S. ----, 112 S.Ct. 592, 116 L.Ed.2d 617 (1991). Specifically, we review the charge to determine whether the charge, taken as a whole and viewed in the light of the evidence, fairly and adequately submits the issues in the case to the jury, and reverse only if the instruction was capable of confusing and thereby misleading the jury. Link v. Mercedes-Benz of North America, Inc., 788 F.2d 918, 922 (3d Cir.1986). See In re Braen, 900 F.2d 621, 626 (3d Cir.1990), cert. denied, --- U.S. ----, 111 S.Ct. 782, 112 L.Ed.2d 845 (1991) (reviewing court must consider charge as whole); Gutzan v. Altair Airlines, Inc., 766 F.2d 135, 138 (3d Cir.1985). Where resolution of a jury instruction issue turns on statutory construction involving the interpretation and application of legal precepts, this court's review is plenary. United States v. Adams, 759 F.2d 1099, 1116 (3d Cir.), cert. denied, 474 U.S. 971, 106 S.Ct. 336, 88 L.Ed.2d 321 (1985).a. 64 The jury was instructed twice on the tax charges. After the jury returned from a deadlock with questions, the trial judge repeated his initial instructions with modifications. Regarding affirmative acts, he stated: 65 The first element of the offense which the Government must prove is an affirmative act constituting an attempt to evade or defeat taxes. A tax deficiency exists from the date a return is due to be filed, April 15th following each taxable year, for the calendar years up to and including 1983 through 1987 as named in the indictment. 66 If you find that the defendant furnished information to his accountant showing the amount of income received for each year, signed and mailed or delivered a return for each year to the Internal Revenue Service Center showing the amount of taxes due; and secondly, that there was an affirmative act to attempt to evade or defeat the payment of taxes, yet willfully failed and refused to pay the taxes shown thereon to be due, the offense is complete for each year when the return is filed on or about April 15th and the taxes are not paid. The affirmative act alleged by the Government was the diversion of the defendant's income from accounts in his name only to other accounts; specifically, the McGill and Seay account, and the Charisse Lillie account. 67 Joint App. at A-2355 (paragraphing as in original instructions on A-2294). The italicized portions were added after complaints by the defense and queries by the jury. Specifically, after the initial instructions the jury returned with two questions, 1) Should we consider failing to file a return evasion of taxes as it applies to count four? [tax years 1980-83, filed in 1985] and 2) Is failing to include a check with your filed taxes simple evasion? Joint App. at A-2354. The court answered both questions clearly no. Id. 68 Without proof of willfulness and, for § 7201, proof of an affirmative act of evasion, a taxpayer cannot be convicted of violating §§ 7201 or 7203. See Spies, supra; United States v. Masat, 896 F.2d 88, 98-99 (5th Cir.1990) (reversal of conviction required where jury was left with the impression that failure to file plus willfulness would be sufficient to convict under § 7201). The jury's confusion on this very fundamental issue indicates that the initial instructions were inadequate in making this clear. 69 We conclude that any inadequacy was cured by the subsequent reinstruction, however. The judge's reinstruction emphasized that to convict of a felony there must be an affirmative act to attempt to evade or defeat the payment of taxes. Joint App. at A-2355. The judge also told the jury before he reread the instructions that a failure to pay was not enough. Joint App. at A-2354. The need for an affirmative act was adequately stressed. 70 b. 71 As further alleged error, McGill points out that the last sentence of the charge limits the relevant affirmative acts to McGill's use of the Lillie and the McGill & Seay accounts. There is no specific mention of the PSFS account, or of the alleged direct payment to McGill of $9,000 in City fees. McGill argues that this precludes any conviction for Counts 7 and 8, because the use of the Lillie and McGill & Seay accounts had ended prior to May 15, 1988. Because we will reverse McGill's conviction under Counts 7 and 8 for insufficient evidence of affirmative acts of evasion, we do not need to consider this point further. However, we do note that the court's failure to mention every allegedly evasive act would not have been fatal to the jury instructions. Courts are not required to enumerate all the specific factors that might exist, and the failure to do so does not constitute reversible error as long as the jury is not expressly or impliedly foreclosed from considering the issues. See Van Buskirk v. Carey Canadian Mines, Ltd., 760 F.2d 481, 494 (3d Cir.1985). 72 c. 73 The instructions regarding the timing of an affirmative act for each charge are more troubling, though we find that any mistakes probably worked to McGill's benefit. In addition to failing initially to convey the necessity of an affirmative act, the third sentence of the original instruction indicates that the offense of evasion of payment is complete from the date the taxes are filed without payment. As McGill notes, this permitted the jury to look backward from the date of filing for each affirmative act, whereas the indictment required them to look forward. This misleading language was not taken out of the amended instruction. 74 However, we find that this error was harmless as to Counts 4, 5 and 6. 27 The instructions required a finding of an affirmative act for each count of the indictment. Count 6 of the indictment required the jury to find an evasive act after April 15, 1986. The jury could reasonably have found that the use of the substitute accounts after the levies took effect in 1985 was affirmatively evasive, despite the defendant's assertion that he did not think he was breaking any of the tax laws. The defendant's own testimony about the diverted funds--I thought the IRS wouldn't bother the money--supports such a finding. Moreover, as the use of substitute accounts began soon after April 15, 1985, the date relevant to Counts 4 and 5, the evidence was also sufficient for a reasonable jury to find, at minimum, that McGill had willfully failed to pay his taxes for the years 1980 through 1984. Any failure of the jury to match the acts of evasion with the years charged in Counts 4-8 worked to McGill's benefit because a correct match would almost certainly have resulted in a felony conviction on Counts 4 and 5, as well as Count 6. We will not overturn a conviction where we are convinced that the error did not prejudice the defendant. See United States v. Jannotti, 729 F.2d 213, 220 n. 2 (3d Cir.), cert. denied, 469 U.S. 880, 105 S.Ct. 243, 83 L.Ed.2d 182 (1984). The strength of the evidence in the years relevant to Counts 4, 5 and 6 indicates that McGill was not prejudiced by the trial judge's instructions on affirmative acts. 28