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C. Wiltzius' Plea Agreement
1. Wiltzius' Contentions
Wiltzius contends that his plea agreement (in which he pled
guilty to filing a false income tax return for 1984 and 1985 and
agreed to pay $11,329.94 in restitution) limited respondent's
right to assert that he was liable as a transferee for House of
Babes' income tax liability for 1984 and 1985. He contends that
his payment of restitution was intended to satisfy all taxes due
from him for 1984 and 1985, including transferee liability.
2. Discussion
By its terms, the plea agreement does not limit Wiltzius'
liability for tax. At the trial of this case, Wiltzius asked his
defense counsel from his criminal case if the restitution
included transferee liability. Wiltzius' criminal defense
counsel said it did not. He testified that transferee liability
was not discussed as part of the plea bargain negotiations. He
said that Wiltzius' restitution was based on Wiltzius' individual
personal income tax liability related to skimming from House of
Babes.
Petitioners contend that the plea agreements show that Godby
paid the IRS House of Babes' tax liability. We disagree. The
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