Iowa Supreme Court Attorney Disciplinary Board v. Karen A. Taylor
887 N.W.2d 369
| Iowa | 2016Background
- Respondent Karen A. Taylor, an Iowa lawyer admitted 1995, willfully failed to file federal and state income tax returns for tax years 2003–2013 (stipulated).
- The Board charged violations under the Iowa Code of Professional Responsibility for tax years 2003–2004 and under the Iowa Rules of Professional Conduct for tax years 2005–2013; Taylor admitted the factual allegations and the stipulation bound the parties on facts.
- Taylor earned substantial income during the period, had prior public reprimands, and persisted in non‑filing even after a dissolution decree ordered separate filings.
- By the disciplinary hearing date Taylor had filed the delinquent returns, entered payment plans, and was making regular payments; she cooperated, expressed remorse, and performed extensive pro bono/low‑fee work.
- The grievance commission found violations of Iowa R. Prof. Conduct 32:8.4(b) and (c) and recommended up to a 30‑day suspension; the Board sought an 18‑month suspension.
- The Supreme Court concluded violations of DR 1‑102(A)(3),(4),(6) for 2003–2004 and Rules 32:8.4(b),(c) for 2005–2013 and suspended Taylor indefinitely with no reinstatement possible for six months, subject to tax payment and reinstatement requirements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Taylor’s non‑filing for 2003–2004 violated DR 1‑102(A)(3),(4),(6) | Board: willful non‑filing when income required returns constitutes deceit, moral turpitude, and reflects adversely on fitness | Taylor admitted facts but argued mitigation and later compliance | Held: violation of DR 1‑102(A)(3),(4),(6) — willful non‑filing meets those disciplinary rules |
| Whether Taylor’s non‑filing for 2005–2013 violated Iowa R. Prof. Conduct 32:8.4(b) (criminal act reflecting on fitness) | Board: willful failure to file is a statutory crime and reflects adversely on fitness even if not charged | Taylor acknowledged willfulness but emphasized mitigation and remedial steps | Held: violation — willful failure to file (a statutory offense) reflects adversely on fitness under 32:8.4(b) |
| Whether Taylor’s non‑filing for 2005–2013 violated Iowa R. Prof. Conduct 32:8.4(c) (dishonesty, deceit, misrepresentation) | Board: willful, knowing non‑filing constitutes deceit/misrepresentation under the rule | Taylor asserted lack of separate independent misrepresentations and offered mitigating evidence | Held: violation — stipulation of knowing, voluntary non‑filing satisfies willfulness/misrepresentation standard |
| Appropriate sanction given violations and mitigation/aggravation | Board: substantial suspension (18 months) because of 11‑year willful pattern and prior discipline | Taylor: short suspension or public reprimand given remediation, payments, remorse, pro bono service, cooperation | Held: six‑month minimum suspension (license suspended indefinitely with no reinstatement for six months), with reinstatement conditioned on tax payments and rule compliance |
Key Cases Cited
- Haskovec v. Iowa Supreme Ct. Att’y Disciplinary Bd., 869 N.W.2d 554 (Iowa 2015) (de novo review standard and burden for disciplinary proceedings)
- Crum v. Iowa Supreme Ct. Att’y Disciplinary Bd., 861 N.W.2d 595 (Iowa 2015) (standard for convincing preponderance in discipline cases)
- Hedgecoth v. Iowa Supreme Ct. Att’y Disciplinary Bd., 862 N.W.2d 354 (Iowa 2015) (burden/standards for disciplinary findings)
- Fields v. Iowa Supreme Ct. Att’y Disciplinary Bd., 790 N.W.2d 791 (Iowa 2010) (willful failure to file taxes can constitute deceit and reflect adversely on fitness; prior sanctioning guidance)
- Lustgraaf v. Iowa Supreme Ct. Att’y Disciplinary Bd., 792 N.W.2d 295 (Iowa 2010) (distinguishing negligent vs. willful non‑filing; rule 32:8.4 analysis)
- Cross v. Iowa Supreme Ct. Att’y Disciplinary Bd., 861 N.W.2d 211 (Iowa 2015) (sanctions where tax noncompliance combined with trust‑account and other violations)
- Iversen v. Iowa Supreme Ct. Att’y Disciplinary Bd., 723 N.W.2d 806 (Iowa 2006) (one‑year suspension for near‑decade tax non‑filing; pattern of conduct increases sanction)
- Schall v. Iowa Supreme Ct. Att’y Disciplinary Bd., 814 N.W.2d 210 (Iowa 2012) (six‑month suspension where tax non‑filing combined with other dishonest acts)
- Knopf v. Iowa Supreme Ct. Att’y Disciplinary Bd., 793 N.W.2d 525 (Iowa 2011) (three‑month suspension; mitigating circumstances can reduce sanction)
- Barnhill v. Iowa Supreme Ct. Att’y Disciplinary Bd., 847 N.W.2d 466 (Iowa 2014) (governing effect of new rules after July 1, 2005)