Legal Document

36 United States Supreme Court Reports Lawyer’s Edition 2d Series KF101.8 U54 941 93 Reporter 2008 412 U.S. 346 UNITED STATES, Petitioner,v.Cecil Judge BISHOP. Number 71—1698. Argued Jan. 16, 1973. Decided May 29, Syllabus Respondent was convicted of violating 26 Code KF62 § 7206(1), which makes it a felony when one '(w)illfully and subscribes any return . he does not believe to be true correct as every material matter,' after the District refused lesser-in-cluded-offense jury charge under 7207, misdemeanor 'willfully delivers or discloses' Internal Revenue Service document 'known by him fraudulent false matter.' The Appeals reversed on ground that 'willfully' used in 7206 implied an evil motive bad faith, but same word 7207 required only showing unreasonable, capricious, careless disregard for truth. Held: has meaning §§ 7206(1) connoting voluntary, intentional violation known legal duty, distinction between statutes is found additional misconduct essential provision; hence, properly requested lesser-included-offense instruction based respondent's erroneous contention statute less scienter than statute. Pp. 2383—2018. 455 Federal Reporter, 2nd 612, remanded. Richard baron Stone, Dept. Justice, Washington, D.C., petitioner. Johnston, Oakland, Cal., respondent. Mr. Justice BLACKMUN delivered opinion Court. 1 Chapter 75, subchapter A, 1954, amended, 7201—7241, concerned with tax crimes. Sections 7201—7207, inclusive, aggregate relate attempts evade defeat tax, failures act, fraud, all include their respective contexts. Specifically, reads: 2 's 7206. Fraud statements. 3 'Any person who— 4 '(1) Declaration penalties perjury. 5 'Willfully return, statement, other document, contains verified written declaration made perjury, matter .. 6 'shall guilty and, upon conviction thereof, shall fined more $5,000, imprisoned years, both, together costs prosecution.' 7 Section statute1 8 '7207. Fraudulent returns, statements, documents. 9 who willfully discloses Secretary his delegate list, account, matter, $1,000, year, both.' 10 This case presents issue critical employed these two successive statutes. Is its each, willfulness specified statute, somewhat degree 11 7206? 12 * Respondent, Cecil Bishop, three counts indictment charging violations respect federal income returns calendar years 1963, 1964 1965. Appeals, holding directed improperly trial judge, judgment remanded new trial. 612 (C.A.9 1972). Since 'willfully,' crime statutes, divided circuits,2 we granted certiorari. 409 841, 64, 34 79 (1972). 13 We conclude proper refuse instruction. In our view, both Consequently, reverse remand so may now proceed consider issues court unnecessary reach. II 14 Bishop lawyer practiced profession Sacramento, California, since 1951. During period, owned interest walnut ranch father operated. 1960 secretary, Louise, married father. died, thereafter stepmother managed ranch. 15 periodically sent checks Louise. These were run ranch, pay principal loans, make improvements. 16 Louise maintained record expenditures submitted itemized list disbursements respondent at end each year. 1963 asserted business deductions amounts paid addition, expenses listed. necessarily resulted double deduction 1963. Moreover, some repayment loans personal items did qualify deductions. 1965 similarly included nondeductible among figures deducted. 17 amount improper taken taxable exceeded $45,000. He enjoyed gross those about $70,000. 18 incorrectness filed disputed Transcript Trial 869—872, 1148. Neither here. Brief 4. III 19 violated return,' 'which defense aware years. claimed law office secretary prepared schedules from records information furnished Louise; merely failed check accuracy. 20 instructions 7207. committed 'who argued should construed require App. 28. With state knowledge dispute, proposed would have allowed choose caprice requiring purpose. judge declined give instead, gave felony, finding defendant intended 'with purpose either disobey law.' 24. 21 After verdict returned, sentenced years' imprisonment count, sentences concurrently. court, however, suspended 90 days sentence placed probation five condition fine $5,000. 31. IV 22 relied followed, F.2d, 614, series own cases,3 particularly Abdul versus States, Cir., 254 292 (1958), enunciating proposition stringent statutes.4 Our examination Ninth Circuit precedents light this Court's decisions leads us Appeals' cannot sustained 23 Atlantic rule appears been evolved language Spies 317 492, 63 364, 87 L.Ed. 418 (1943). effect affirmative act necessary constitute willful attempt within 145(b) Act 1936, 49 Statutes-at-Large 1703. request. Second affirmed. reversed. 145(b), applying manner tax,' companion 145(a), fails such keep records, supply information, time times regulations.' predecessors current 7201 7203, respectively 1954 Code. distinguishing offenses, said: 24 'The difference failure due, misdemeanor, one, easy detect define. Both must willful, said, many meanings, construction often being influenced context. Murdock, 290 389, 54 223, 78 381. It well mean something applied nonpayment return. Mere voluntary purposeful, distinguished accidental, omission timely might meet test willfulness. But view traditional aversion debt, without clearest manifestation Congressional intent assume mere knowing default payment where there had no disclose liability, criminal offense degree. expect element want justification financial circumstances taxpayer. 25 'Had 145(a) nor defined misdemeanors generally observe statutory duties information—duties imposed facilitate administration even if, because insufficient net income, duty tax. then permissible perhaps appropriate felonies omissions added definition think, argues strongly against interpretation.' U.S., 497—498, 367. considered appeal taxpayer (§ 2707(b) 1939 7203 Code) file acquitted 2707(c) 7202 account withholding taxes. inability pay. instructed term 'wilful' meant, things, 'capriciously whether right act,' whereas meant one's obligation taxes due defraud Government conduct.' 294. Relying Spies, approved concluded 27 'the means non-payment true, words defining relates adequately clearly point up difference.' Ibid. 28 Because error cross-examination Abdul, On retrial, again convicted. appealed, 278 234 1960). When sought certiorari, Solicitor General conceded could stand undertook say present motion correction sentence. Certiorari, accordingly, denied. Two Justices writ review correctness 'regarding requirement willfulness.' 364 832, 81 44, 58 (1960). 29 continued charges charges. requires 'unreasonable, truth falsity filed,' 'requires proof faith.' 615. level willfulness, thus, create factual 30 do support implicitly they reject approach Appeals. speculated, 495—498, 366, Congress regulatory aspects system, call compliance regardless status, revenue-collecting aspects, place demands meet. antecedent (as section itself today) punished misdemeanors, drawn line basis distinctions system's aspects. reliance hypothetical scheme, discussed what actually done, misplaced. Utilizing unsupported foundation, constructed further general also inconsistent prior 31 Berra 351 131, 76 685, 100 1013 (1956), 7201, namely, Code, identical, purposes, number 1936 Spies. entitled 3616(a) rejected contention, concluding sections 'covered precisely ground.' 134, 687. Implicit conclusion automatically lower felonies. 32 Although 3616(a), proffered contain facts presented Sansone 380 343, 85 1004, 882 (1965), issue, contained 'willfully.'5 argument set exist satisfy felony: 33 'Given petitioner's misstatement deficiency, obviously found, sense knew reported year 1957, If action neither.' 353, S.Ct., 1011. analysis 7203. Id., 352, 1010. clear implication decision possesses thus foreclosed given another 35 thesis therefore, incorrect. V possible, course, different turn possibility. 37 continue recognize context important quest word's meaning. See 394—395, 225, 381 (1933). Here, 'legislative history section(s) nothing helpful question here find answer (sections themselves) (their) revenue laws.'6 495, 366. first, then, themselves. 38 apply 'return' cover if sections. 'it unusual readily derelictions just misdemeanor,' 497, 367, concludes misdemeanor. 39 difficulty substantially express terms. most obvious applies 'contains perjury.' No equivalent recognizes relies presence perjury declarations fact effectively equalizes issue. 6065(a).7 40 approach, persuasive reasons. First, power 6065(a) provide required. provide, immediately becomes operative area theretofore covered 7206(1). Second, limited A nonfederal warning. type course audit, not. 41 There are distinctions. verify writing, liable affirmatively statements true. For rise liability part disclosed Service; protection situation false. 42 differences applications solid evidence ways 'willfully.' Hastie, analyzing appropriately described disctinction follows: 43 'However, quality characterizes wrongdoing.' Vitiello, 363 240, 243 (C.A.3 1966). 44 Thus uniform several rendering them surplusage. next 45 hierarchy offenses forth utilizes mental offender guide establishing penalty. relating recognized 'climax variety sanctions' 'capstone system sanctions singly combination calculated induce prompt forthright fulfillment penalty suitable delinquency.' 367; Sansone, 350—351, 1009. actor's acts done designation certain elements offenses. example, held that, evade, 'Congress commission addition misdemeanors.' 499, 368. Similarly, show matter. 46 All except subsections 7206, viz., (3) (4), states mind normal simultaneous strong describe constant rather variable formula.8 47 Court, fact, connotes duty. formulated 'bad faith intent,' 398, 226, 'evil taxpayer,' 498, 368, 'should did.' James 366 213, 221, 1052, 246 (1961); McCarthy 394 459, 471, 89 1166, (1969). 48 longstanding interpretation recurring promotes coherence group complex uncertainty arises taxpayers earnestly wish follow law. 'It penalize frank innocent errors despite exercise reasonable care.' 496, Degrees negligence civil penalties. met, good 221—222, 1056. Cf. Lambert 355 228 (1957). consistent mens rea implements pervasive construct separate purposeful violator well-meaning, easily confused, mass taxpayers. Until speaks otherwise, therefore require, supra. hold, consequently, dispute centered follows felony.9 Under proper, function 134—135, 50 reversed, proceedings. ordered. 51 Reversed 52 DOUGLAS affirm Powell. 612. Title defines misdemeanor: 1. Offenses classified. 'Notwithstanding contrary: Any punishable death exceeding felony. '(2) misdemeanor.' Compare 1966) (§§ 7203), Haner 315 792, 794 (C.A.5 1963) rejected, Fahey, 411 1213 (C.A.9), cert. denied, 396 957, 430, 422 (1969) 7203); Martin 753 1958) (c) Code). Janko 281 156, 166—167 (C.A.8 1960), rev'd confession General, 716, 1662, 846 (1961) 7207); Lumetta 362 644, 646 n. Escobar 388 661 1967), 390 1024, 88 1141, 282 (1968) 7207). Other inconsistencies interpreting compounded confusion. 8, infra. Lachmann, 469 1043 (C.A.1 1972) 7203). Haseltine, 419 579, 581 (1970) 2, supra; Eustis Edwards 375 862 (1967) 7206(2)); One possible result distinction, Government's burden case. applicability contested 133, 687, soon 'did evasion tax.' Achilli 353 373, 379, 77 995, 998, 918 revisions effected enactment applicable violations. 347—349, 1008, (1965). H.R.Rep.No.1337, 83d Cong., Sess., A425 (1954); S.Rep.No.1622, 602—603 (1954). predecessor 3809(a) was, noted above, 280 347, 1008. '§ 6065. Verification returns. '(a) Penalties 'Except otherwise provided delegate, declaration, provision internal laws regulations Treas.Reg. 1.6065—1 Semantic confusion sometimes created courts discuss 'attempt evade' implicit produces suggesting Ming, 466 1000, 1004 (C.A.7), 915, 235, 176 (1972) Matosky, 421 410 (CA7), 398 904, 1691, 62 581; 867; Schipani, 825, 831 (CA2), 385 934, 293, 214 (1966). responsible imprecision similar 497—499, Greater clarity distinguishes elements, evade,' prescribed never lesser actor falsity. said 'necessarily included' Fed.Rule Crim.Proc. 31(c). reach contention.

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