Tax Conspiracy Trumped False Return Restitution

UILC: 6201.01-06
Release Date: 10/15/2021

ID: CCA_2020072214550544

From: * * *
Sent: Wednesday, July 22, 2020 2:55:05 PM
To: * * *
Cc: * * *
Bcc:
Subject: RE: Potential Westbrooks case- * * *

The entire amount of restitution ordered in this case with respect to * * * is not subject to the Westbrooks limitations on assessment and collection. The defendant was convicted on two counts set forth in the indictment: Count * * * was for conspiracy to commit tax fraud, and Count * * * was for aiding and abetting the filing of a false return for * * *, for * * * in * * *.

The conduct alleged in Count * * * was that * * * and others conspired, starting in * * * and continuing up to the date of the indictment in * * *, to defraud the United States “for the purpose of impeding, impairing, obstructing, and defeating the lawful functions of the IRS in the ascertainment, computation, assessment, and collection of the revenue, [including] . . . corporate income taxes.” The actions by which * * * and the co-conspirators were alleged to have carried out the conspiracy included:

• causing adjustments to be made to the books and records of * * * to understate gross receipts (indictment paragraph * * *), and

• preparing and filing, and causing to be prepared and filed, false and fraudulent returns for, among others, * * * (indictment paragraph * * *).

* * *, is one of * * *. Thus Count * * * includes all of the conduct alleged in Count * * *: Count * * * includes causing * * * to understate gross income and file false returns, and Count * * * was for causing * * * to file a false return by understating gross income. So all of the restitution imposed in the judgment was for conduct covered by the Title 18 count (Count * * *). It is, therefore, not subject to the Westbrooks limitations.

Please call if you have further questions about this matter.