ATTORNEY GRIEVANCE COM'N OF MARYLAND v. Atkinson

745 A.2d 1086, 357 Md. 646, 2000 Md. LEXIS 46
CourtCourt of Appeals of Maryland
DecidedFebruary 14, 2000
DocketMisc. AG No. 27, Sept. Term, 1998
StatusPublished
Cited by66 cases

This text of 745 A.2d 1086 (ATTORNEY GRIEVANCE COM'N OF MARYLAND v. Atkinson) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ATTORNEY GRIEVANCE COM'N OF MARYLAND v. Atkinson, 745 A.2d 1086, 357 Md. 646, 2000 Md. LEXIS 46 (Md. 2000).

Opinions

RAKER, Judge.

The Attorney Grievance Commission (AGC), through Bar Counsel, charged Rena Vaughn Atkinson, Respondent, with several violations of the Maryland Rules of Professional Conduct, arising out of her failure to pay federal and state income taxes for the years 1986 through 1996. Pursuant to Maryland Rule 16-709(b), we referred the charges to Judge E. Allen Shepherd, of the Circuit Court for Princes George’s County, to conduct a hearing and make findings of fact and proposed [648]*648conclusions of law. After hearing evidence, Judge Shepherd filed a memorandum opinion in which he made detailed findings of fact and conclusions of law. He concluded that Respondent had violated Maryland Rules 8.4(b), (c) and (d). Rule 8.4 Misconduct reads, in pertinent part, as follows:

It is professional misconduct for a lawyer to:
^ ‡ ‡ ‡ ‡ ‡
(b) commit a criminal act that reflects adversely on the lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects;
(c) engage in conduct involving dishonesty, fraud, deceit or misrepresentation;
(d) engage in conduct that is prejudicial to the administration of justice....

Respondent filed exceptions to Judge Shepherd’s findings of fact and conclusions of law, all of which we shall overrule.

t — i

Following an evidentiary hearing, Judge Shepherd, being persuaded by the clear and convincing evidence presented at the hearing, filed the following findings of fact and conclusions of law:

FINDINGS OF FACT
Respondent is a member of the bar in both the state of Maryland and the District of Columbia. She is a 1983 graduate of the Columbus School of Law, Catholic University of America, where she took courses in income tax law.
After she was admitted to the bar of Maryland in 1984, Respondent worked as an associate with the law firm Deckelbaum, Ogens, and Fisher. While employed with the firm, Respondent filed her tax returns1 and paid any tax [649]*649liability which exceeded the amount the firm had already withheld on her behalf.
Respondent left the firm in 1988, and has been a sole practitioner ever since. Her practice consists mostly of estate and probate work. Her principal office is in the District of Columbia, however, she sometimes works out of her home in Hyattsville, Maryland. She has no employees.
From 1988 to 1996, Atkinson failed to file joint federal and state income tax returns for herself and her husband. With each passing year, Respondent’s tax arrearages grew until they had a “snowballing” effect. Respondent knew that she could not afford to pay the back taxes, and therefore did not file the returns. Instead, Respondent allowed the arrearages to mount, and simply avoided the situation. At all times, Respondent was aware that she had a legal obligation to file tax returns.
In 1994, Respondent and her husband went to the Internal Revenue Service (I.R.S.) Office in Largo, Maryland. They received several forms pamphlets from the I.R.S. help desk assistant, but they did not speak with an agent. Nor did Respondent make any other arrangements to meet with an agent at a later date.
Instead, it was the I.R.S. that brought this matter to light. In early 1997, I.R.S. Agent Bill Rush contacted Respondent. Upon Rush’s request, Respondent attempted to gather information so that she could prepare tax returns for the years 1988 through 1996. As she went through her papers, Respondent discovered tax returns for the years 1986 and 1987 that had been prepared, but never mailed. In April of 1997, Rush notified the Attorney Grievance Commission of Respondent’s failure to file returns and pay taxes. Respondent has since filed [a] return for each year from 1986 through to the present, except for 1988. Respondent was unable to find sufficient documentation to file her return for that year.
The I.R.S. has determined that Respondent owes approximately $93,000 in back taxes and penalties. Respondent has made one payment of $15,546.61 toward that balance. [650]*650Respondent has made no other payments toward her federal or state tax arrearages.
During the years in which she failed to file tax returns, Respondent earned as much as $61,000 a year. Due to the nature of her probate and estate practice, however, Respondent’s cash flow was irregular. While evidence showed that Respondent has two mortgages on her home and is the primary bread-winner for her family of four, there was no evidence presented that Respondent suffered any extraordinary financial hardship during the years in question. Nor was there any evidence that Respondent suffered from any debilitating physical or mental illnesses or conditions that would have affected her ability to file tax returns or make payments.
CONCLUSIONS OF LAW
Based upon the foregoing Findings of Fact, the Court finds that Respondent willfully, knowingly, and purposely failed to file income tax returns from 1986 to 1996. The willful failure to file timely income tax returns is a crime. The Court need not find that Respondent actually intended to defraud the government; willful failure is sufficient to constitute a crime. Additionally, willful failure to file income tax returns adversely reflects on the lawyer’s fitness to practice law. Therefore, Respondent clearly violated Rule 8.4(b) of the Maryland Rules of Professional Conduct.
The willful failure to file timely income tax returns also violates Rule 8.4(c) of the Maryland Rules of Professional Conduct. The rule states that an attorney cannot engage in any conduct involving dishonesty, fraud, deceit, or misrepresentation. In the case at bar, Respondent knew that she had failed to file tax returns when she went to the I.R.S. office in Largo in 1994. She received information on how to handle the situation, and then again failed to act. Her failure to contact an I.R.S. agent to remedy the situation was, at best, dishonest. Had she been more forthcoming, the “snowballing” effect could have been avoided, or at the very least diminished. The Court finds that Respondent’s [651]*651inaction violated Rule 8.4(c) of the Maryland Rules of Professional Conduct.
Finally, the Court finds that Respondent violated Rule 8.4(d) of the Maryland Rules of Professional Conduct. Respondent’s -willful failure to file her federal and state tax returns was prejudicial to the administration of justice. [All footnotes but first omitted.]

II.

Bar Counsel took no exceptions to Judge Shepherd’s findings of fact or conclusions of law, offering only a recommendation as to the appropriate sanction to be imposed. Bar Counsel recommends that Respondent be suspended for a period of three years.

Respondent excepts to two of the hearing court’s conclusions of law, specifically that her failure to file and pay income taxes violated both subsections (b) and (c) of Rule 8.4.2 [652]

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Bluebook (online)
745 A.2d 1086, 357 Md. 646, 2000 Md. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-grievance-comn-of-maryland-v-atkinson-md-2000.