Opinion ID: 466323
Heading Depth: 2
Heading Rank: 3

Heading: Making a Return Under Section 7206(1).

Text: 25 SAC claims that its convictions on seven counts of violating section 7206(1) should be reversed as a matter of law because a tax return preparer cannot make a return within the meaning of the statute. 26 U.S.C. Sec. 7206(1). While SAC does not deny its participation in preparing the false returns, it claims that it could only be charged under section 7206(2) for assisting in the preparation of a false return. 26 U.S.C. Sec. 7206(2). It bases its distinction on the fact that the taxpayer alone has the statutory duty to file a federal income tax return. 26 Nothing in the statute or case law indicates that a charge under section 7206(1) for making and subscribing a false return is based on the taxpayer's duty to file or make an income tax return. Instead, sections 7206(1) and 7206(2) are closely related companion provisions that differ in emphasis more than in substance. United States v. Haynes, 5 Cir., 1978, 573 F.2d 236, 240. Section 7206(1) is a perjury statute, making any person who knowingly makes and subscribes a false statement on any return criminally liable. Id.; 26 U.S.C. Sec. 7206(1). Section 7206(2) has a broader sweep, making all forms of willful assistance in preparing a false return an offense. 26 U.S.C. Sec. 7206(2). Perjury in connection with the preparation of a federal tax return is chargeable under either section. Haynes, 573 F.2d at 240; see United States v. Miller, 5 Cir., 1974, 491 F.2d 638, 649. The Fifth Circuit has considered the exact issue of whether a tax preparer can be charged under section 7206(1) rather than 7206(2) and held that he could. Miller, 5 Cir., 491 F.2d at 649; see Haynes, 573 F.2d at 240. We are persuaded to do the same. 27 SAC argues that our decision in another United States v. Miller, 9 Cir., 1976, 545 F.2d 1204, recognizes the exclusivity of sections 7206(1) and (2). We disagree. In Miller, we commented sua sponte in a footnote that the defendant, who had prepared a false return for his wife, should have been charged under section 7206(2) for assisting in the preparation of the return, rather than under section 7206(1) for subscribing the return. Id. at 1216 n. 16. It is not clear from the opinion whether the defendant actually committed perjury by subscribing his wife's false return or whether he merely prepared it in advance of her subscription. Id. In either case, we went on to hold that the possible error was not fatal because indictment under section 7206(1) contains the elements of the section 7206(2) offense sufficiently to apprise the defendant of what he has to be prepared to meet at trial and is detailed enough to assure against double jeopardy. Id. See also Miller, 5 Cir., 491 F.2d at 649. This holding does not conflict with our conclusion here that a tax return preparer can properly be charged under section 7206(1) for willfully making and subscribing a false return. 28