- 4 - Kennedy v. Mendoza-Martinez, 372 U.S. 144 (1963); Spies v. United States, 317 U.S. 492 (1943); Grimes v. Commissioner, 82 F.3d 286 (9th Cir. 1996), affg. Ward v. Commissioner, T.C. Memo. 1995-286. In Spies v. United States, supra at 495 (citing Helvering v. Mitchell, supra), in explaining that Congress may impose both criminal and civil sanctions in enforcing the tax laws, the Supreme Court stated that “invocation of one does not exclude resort to the other.” See also United States v. Sabourin, 157 F.2d 820, 821 (2d Cir. 1946); and Schwener v. Commissioner, T.C. Memo. 1987-594, for the same proposition. In light of Helvering v. Mitchell, supra, and the subsequent cases, in Schachter v. Commissioner, supra, we rejected petitioners' double jeopardy argument, and we sustained respondent’s determination of the civil fraud additions to tax. In the current computational dispute, petitioners do not again dispute -- under the double jeopardy clause of the U.S. Constitution -- imposition of both criminal and civil sanctions with regard to the same acts. Rather, petitioners argue that the $250,000 criminal fine that was imposed on petitioner should be allowed as a credit against the civil fraud additions to tax for 1985, 1986, 1987, and 1988 that were determined by respondent against petitioner and that were sustained in our prior opinion. Helvering v. Mitchell, supra, and its progeny do not directly address whether taxpayers have a right to credit against civil fraud additions to tax the amount of related criminalPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011