United States v. Johnson, No. 14-2460 (8th Cir. 2015)
Annotate this CasePoynter operated an Original Issue Discount (OID) scheme, under which taxpayers falsely list large amounts of OID interest income from municipal bonds and certificates of deposit and corresponding amounts of withholding and claim large tax refunds. Johnson recruited clients and paid Poynter 50 percent of the fee. Her contract included a statement that Poynter’s material was not legal or tax advice. By signing the contract, Johnson agreed that she was not affiliated with the IRS. Clients signed a contract that listed a $20 million penalty for disclosure and certified that the client was not affiliated with any government agency. Johnson completed Kennedy’s 2008 return stating that Kennedy had earned $89,605 in OID income, that $87,492 was withheld, and that Kennedy was entitled to a $61,959 refund. Kennedy was unemployed and received only disability income, none of which was withheld. Kennedy paid Johnson $4117 by deposit into a third party’s bank account. Poynter submitted Gray’s 2007 tax return, listing income of $401,068 and withholding of $401,067. The IRS deposited a $278,874 refund; Gray paid Poynter $15,000. Gray filed additional fraudulent returns for other tax years. After Poynter’s scheme was uncovered, 14 defendants were indicted. Johnson and Gray were each convicted of making a false claim for a tax refund, 18 U.S.C. 287. Johnson was sentenced to 48 months’ imprisonment; Gray to 60 months. The Eighth Circuit affirmed, rejecting challenges to the sufficiency of the evidence; to calculation of the intended amount of loss; and to application of an increase for an offense that involved sophisticated means.
Court Description: Colloton, Author, with Murphy and Kelly, Circuit Judges] Criminal case - Criminal law and sentencing. Evidence was sufficient to support defendant Johnson's conviction for making a false claim for a tax refund as a jury could find she caused the submission of a false tax return through an intermediary; in calculating the amount of loss defendant Gray intended, the district court did not err in finding that Gray intended to receive refunds based on multiple returns filed in a single tax year; no error in imposing an enhancement under Guidelines Sec. 2T1.1(b)(2) for use of "sophisticated means."
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