Civil Effect

9th Cir. Case with Tax Evasion Effect (9/8/2019)

USA V. JOSEPH SHAYOTA (9th Cir. 2019) (No.17-10270-08/19/2019)(http://cdn.ca9.uscourts.gov/datastore/opinions/2019/08/19/17-10270.pdf) This case answers the question of whether a defendant’s civil record testimony can be introduced in a subsequent criminal trial. Defendants objected to the use of their civil trial depositions in their criminal case. The two element rule that allows the use of civil deposition in a criminal trial is that (1) the declarant is unavailable, and (2) the defendant had a prior opportunity to confront the declarant through cross-examination. Defendant argued that there was no unavailability despite a decision not to testify because the prosecutor could have granted immunity and force them to testify.

9th Circuit panel continued that raising the Fifth Amendment privilege renders a defendant “unavailable” for purposes of the Confrontation Clause, and that the two element rule was satisfied. The panel went on to find that any error was harmless and defendants would have been found guilty without the deposition testimony.

Lessons learned from the above principle:
(a) Every civil controversy that has any possibility to be followed by a criminal prosecution could raise waivers and admissions in a later criminal case.
(b) For tax, the administrative record of statements of the taxpayer begins with the tax return, followed by every communication of fact to IRS & the courts. “Represent Civilly” by “Thinking Criminally”.
(c) A civil deposition might have been better, even if filled with “Fifth Amendment” excuses not to answer, rather than a wordy, overly chatty, explanative manifesto.
(d) Most famously, bankruptcy provides a matching set of personal financial information which has traditionally provided a significant amount of information relating directly to tax evasion.


Bio: Curt Harrington advises tax clients in Los Angeles County and Orange County, California and may be reached locally as shown on the business web site https://patentax.com/ . His background is more completely seen on the biography page https://patentax.com/curt/ .

Curt looks forward to advising tax debtors and business startups in the Long Beach, California area, particularly with an approach to helping structure business relationships to reduce the negative economic exposure of the startup entrepreneur in opposition to government authorities that endanger startup principals. Curt looks forward to speaking with you at (562)594-9784.

Other Sections within a Tax Debt Approach blog:
Instructive Warning Cases
Bankruptcy & Offer-In-Compromise – The Hot Dog Stand Paradigm
A Tax Debt Only Comparison of Offer-In-Compromise and Chapter 7 Bankruptcy in California Graduating From a Homelessness Base Case
How Far Can You Delay Paying Federal Tax Authorities Before Criminal Tax Evasion Charges are Filed?
Taxpayer First Act Credit Card Trap
There are Usually 6 Tax Choices At Any Given Point In Time

Tax Evasion Avoidance Learning Blog : https://rebrand.ly/TaxEvasionAvoidance ; articles include other articles Outside this blog:

USA V. RODRIGO LOZANO – Memorandum Opinion Invites Further Analysis (9/13/2019)

Full Disclosure (9/11/2019)

Civil Effect (9/28/2019)

Curt’s CriminalLaw.com Articles:

The Reentry Teachings of U.S. v. Vicente Cuevas-Lopez (9th Cir. 2019) (9/20/2019)

Why Judges Control Electronics Strictly (9/15/2019)

USA V. RODRIGO LOZANO – Memorandum Opinion Invites Further Analysis (9/13/2019)

Prerequisites for Imposing a Time Payment Fee Were Not Met (9/12/2019)

9th Cir. Unpublished Criminal Tax Evasion Case Indicating Full Disclosure as a Prerequisite to use of a “following in good faith” exception to “willful intent.” (9/11/2019)

New 9th Cir. Case With Potential Tax Evasion Effect – Civil Admissions Become Prosecutor Weapon against Non-Testifying Defendants (9/8/2019)

Know & Use the Burden of Proof in the Best Way (9/5/2019)

How Far Can You Delay Paying Federal Tax Authorities Before Criminal Evasion Charges are Filed? (8/10/2019)

Character (Habit)Evidence Can Show Impulsivity, But Not Simply Evidence Of Brain Injury (7/24/2019)

US v. RAYMOND LAMBIS ORDER TO SUPRESS STINGRAY TRACKING (DC SDNY) (7/18/2016)

9th Circuit Rejects “One Day Late Rule” for Late Filed Return Tax Dischargeability (7/18/2016)

Unpublished 9th Cir. Case shows (1) that KNOWLEDGE instruction for 18 USC §1001 can be waived; & (2) even ambiguous agent notes & no recording can get a conviction – Use Right To Silence!! (2/1/2015)

Other Articles Outside this blog:
Debt Control Extensive Outline (8/14/2019)

Pre-Startup Efficiency – Introduction (Parts 1&2) (2016)

9th Circuit Rejects “One Day Late Rule” for Late Filed Return Tax Dischargeability (2016)

Give My Start-Ups a Break! (2015)



Published by taxevasionavoidance

Tax Evasion Cases Discussion

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