United States v. Allen
670 F.3d 12
1st Cir.2012Background
- Husband and wife Frederick and Kimberlee Allen were convicted of tax offenses after years of filing zero reported income.
- From 1998 they stopped withholding by claiming exemptions; in 2000 they were paid as independent contractors to avoid withholding.
- Between 2000-2008 they filed no tax returns despite government estimates of over $100,000 in income annually.
- They engaged in schemes to conceal assets and pay bills in cash or money orders.
- IRS repeatedly warned the “no liability” position was frivolous, culminating in criminal charges in 2009.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Guilt by association instruction required | Allen | Allen | Not error; no plain error given minimal prejudice. |
| Conspiratorial intent instruction required | Allen | Allen | Two intents adequately conveyed; no error. |
| Not know law instruction necessary | Allen | Allen | Proper to refuse; not required. |
| Theory of defense instruction required | Allen | Allen | Not required; trial record showed no separate theory needing emphasis. |
Key Cases Cited
- Cheek v. United States, 498 U.S. 192 (1991) (willfulness requires belief that conduct is legal or not wrongful; due process limits on defenses)
- United States v. Frankhauser, 80 F.3d 641 (1st Cir. 1996) (two-intent conspiracy framework; willfulness requirement in fraud cases)
- United States v. Teemer, 394 F.3d 59 (1st Cir. 2005) (instructions on willfulness and good faith reviewed de novo for law, abuse of discretion for wording)