Opinion ID: 530313
Heading Depth: 2
Heading Rank: 1

Heading: The False Filing Counts

Text: 15 In order to obtain a conviction for a violation of Sec. 7206(1), 2 the government was required to show that Van Eman and Wilson willfully made and subscribed to the returns, that the returns contained a written declaration that they were made under penalties of perjury, and that Van Eman and Wilson did not believe the returns to be true as to every material matter. See United States v. Taylor, 574 F.2d 232, 234 (5th Cir.), cert. denied, 439 U.S. 893, 99 S.Ct. 251, 58 L.Ed.2d 239 (1978). 16 Initially, appellants assert that there is no direct evidence to establish their identities as the ones who subscribed to the returns. The challenge must fail. The fact that an individual's name is signed to a return, statement, or other document shall be prima facie evidence for all purposes that the return, statement, or other document was actually signed by him. 26 U.S.C. Sec. 6064. Appellants made no effort to rebut this presumption. The subscription element is satisfied. See United States v. Carrodeguas, 747 F.2d 1390, 1396 (11th Cir.1984), cert. denied, 474 U.S. 816, 106 S.Ct. 60, 88 L.Ed.2d 49 (1985). 17 Appellants also challenge the evidence as being insufficient to demonstrate that they acted willfully and with the belief that the returns were false. We disagree. With regard to the corporate return for the tax year ending March 31, 1982, the government demonstrated that Basin made a wire transfer of $358,525.37 to Sabine as payment for oil. The government also presented evidence that transfers totaling $300,000 were made from the Sabine ANB account to Van Eman and Wilson. The corporate return reflected gross receipts of $300,000 for the year and made no mention of the transfers to appellants. Indeed, the return indicated expenditures of $245,287 for cost of goods sold, a figure completely incompatible with the $300,000 in transfers. This evidence was clearly sufficient for a reasonable jury to conclude that Wilson willfully subscribed to a false income tax return. Van Eman did not sign the return, and there is no evidence that he participated in its preparation. Nevertheless, because we conclude there is sufficient evidence from which a jury could find that there existed a conspiracy and that the corporate return was filed in furtherance of that conspiracy, we sustain Van Eman's conviction for filing a false corporate income tax return. See Pinkerton v. United States, 328 U.S. 640, 645-47, 66 S.Ct. 1180, 1183-84, 90 L.Ed. 1489 (1946). The jury reasonably could conclude that the false corporate return was filed to avoid any evidence of the transfers to appellants. 18 With regard to the individual returns, the government presented evidence that in 1980 both appellants received transfers of $475,000 in corporate funds that went unreported on their individual tax returns. The government presented evidence that in 1981 both appellants received a transfer of $150,000 in corporate funds that went unreported on their individual tax returns. This evidence in itself is sufficient for a jury to conclude that Van Eman and Wilson filed false income tax returns. See United States v. Thetford, 676 F.2d 170, 175 (5th Cir.1982), cert. denied, 459 U.S. 1148, 103 S.Ct. 790, 74 L.Ed.2d 996 (1983); United States v. Miller, 545 F.2d 1204, 1215 & n. 13 (9th Cir.1976), cert. denied, 430 U.S. 930, 97 S.Ct. 1549, 51 L.Ed.2d 774 (1977). 19 Appellants argue that the government never demonstrated that these transfers were reportable income or were spent on other than corporate purposes. These arguments misapprehend the required proof. The government does not bear the burden of demonstrating how the funds were spent. See Thetford, 676 F.2d at 175. Once a taxpayer has taken control of funds diverted from a corporation and then fails to report such funds as income or to make any adjustment in the corporate books to reflect a return of capital, that is sufficient to imply willful intent to file a false return. Id. In the present case, the Sabine tax returns for the years in which the transfers were made do not reflect that these transfers even took place, much less that they were loans or returns of capital. On this record, the jury was entitled to conclude that the transfers were income and should have been reported. 20 Van Eman argues that proof of willfulness on his part is lacking because his individual returns were prepared by a professional tax preparer. We have held that reliance on a qualified tax preparer is an affirmative defense to a charge of willful filing of a false tax return. See Bursten v. United States, 395 F.2d 976, 981 (5th Cir.1968), cert. denied, 409 U.S. 843, 93 S.Ct. 44, 34 L.Ed.2d 83 (1972). To avail himself of the defense, a defendant must demonstrate that he provided full information to the preparer and then filed the return without having reason to believe it was incorrect. See United States v. Markham, 537 F.2d 187, 195 (5th Cir.1976), cert. denied, 429 U.S. 1041, 97 S.Ct. 739, 50 L.Ed.2d 752 (1977); United States v. Whyte, 699 F.2d 375, 379 (7th Cir.1983). Van Eman presented no evidence concerning either element, and thus the defense is unavailable to negate the jury's finding of willfulness.