Court Opinion

ID: 9843140
Source: CourtListenerOpinion
Date Created: 2023-09-24 02:28:20.036455+00
Date Added: 2024-06-11T09:14:37.889780
License: Public Domain

GREENBERG, Circuit Judge,
concurring:
I join in the opinion of the court because I believe that it correctly states the substantive tax law and because I further believe that it is appropriate for us to exercise our mandamus jurisdiction to direct the correction of the error in the proposed charge. Nevertheless I do so with some reluctance because I have difficulty reconciling Wexler’s prosecution with the principles underlying Cheek v. United States, 498 U.S. 192, 111 S.Ct. 604, 112 L.Ed.2d 617 (1991). In its petition for mandamus the government tells us that “the district court’s order adopts an erroneous jury instruction predicated on a fundamentally incorrect reading of the tax law [which] if not corrected by this Court ... will force the government to dismiss the charges_” Petition at 1. Thus, the government explains, the “incorrect instruction would virtually preclude the government from obtaining a conviction [as] it would leave [it] with no means of proving a critical element of its ease — that the interest deductions at issue were invalid.” Petition at 2. The government adheres to this position in its reply brief, asserting that the district court’s error “will force the government to dismiss the criminal charges.” Reply brief at 4. In the circumstances, it is evident that the government’s trial problem is that the district court intends to charge the jury that the deductions involved in this case were not unlawful, and the government quite understandably feels that in the face of that charge it cannot be successful at trial.
What bothers me in the government’s position is that it is challenging a conclusion reached by the district court in a carefully crafted formal, though unpublished opinion, rendered after the court considered the appropriate authorities, including some of the very cases we cite, e.g., Lerman v. Comm’r, 939 F.2d 44 (3d Cir.1991), cert. denied, — U.S. -, 112 S.Ct. 1940, 118 L.Ed.2d 546 (1992). Furthermore, the district court adhered to its conclusion on reconsideration. Therefore, Wexler is being prosecuted in a case in which the government intends to demonstrate that he acted in what the district court believed was a lawful manner. This circumstance almost has caused me to vote to deny the government’s petition.
In Cheek the Supreme Court noted that “[t]he proliferation of statutes and regulations has sometimes made it difficult for the average citizen to know and comprehend the extent of the duties and obligations imposed by the tax laws.” 498 U.S. at 199-200, 111 S.Ct. at 609. Thus, “[i]n the end [in a criminal case] the issue is whether, based on all the evidence, the Government has proved that the defendant was aware of the duty at issue, which cannot be true if the jury credits a good-faith misunderstanding and belief submission, whether or not the claimed belief or misunderstanding is objectively reasonable.” Id. at 202, 111 S.Ct. at 611. The Supreme Court’s formulation throws into question the fairness of Wexler’s prosecution for even the district court did not believe that Wexler violated “the duty at issue.” Thus, I have considered whether, notwithstanding the government’s demonstration of a prima facie ease for the issuance of a writ of mandamus, we should not exercise our discretion by denying its application. See In re School Asbestos Litig., 977 F.2d 764, 772 (3d Cir.1992).
*130However, I ultimately do join in the opinion for I do not question the government’s good faith in instituting the criminal case as I have no doubt that it was surprised by the legal conclusions reached by the district court, and, on the limited record before us, I do not know all the circumstances which led the government to seek Wexler’s indictment. Furthermore, I cannot possibly fault the government for seeking a writ of mandamus from this court as I accept its representation that, unless corrected, the district court’s unreported opinion will be circulated and will stand as an impediment to the enforcement of the tax laws. Of course, now that the government has obtained its goal of overcoming the district court’s opinion, the determination whether this criminal case should be continued must be made by the prosecuting authorities and not by this court.
I close, however, by pointing out that our opinion is narrow. We only give directions with respect to the charge to the jury. Accordingly, we do not address the possibility that Wexler may in some way be able to bring to the jury’s attention the district court’s opinion to support a contention that he acted in good faith with respect to the transactions and the deductions involved. That issue, however, is not before us and consequently I express no opinion with respect to it.