United States v. John L. Cheek

3 F.3d 1057, 72 A.F.T.R.2d (RIA) 5727, 1993 U.S. App. LEXIS 21537, 1993 WL 317649
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 23, 1993
Docket92-1668
StatusPublished
Cited by80 cases

This text of 3 F.3d 1057 (United States v. John L. Cheek) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. John L. Cheek, 3 F.3d 1057, 72 A.F.T.R.2d (RIA) 5727, 1993 U.S. App. LEXIS 21537, 1993 WL 317649 (7th Cir. 1993).

Opinion

ALDISERT, Senior Circuit Judge.

Like most of us, John Cheek, does not like to pay taxes. Unlike most of us, however, he has refused to pay them. As a result of his refusal to pay federal income taxes, Mr. *1059 Cheek has been a frequent visitor to our courts.

On several occasions, Mr. Cheek has attempted to persuade the district courts of this Circuit and, on one occasion, this court to declare federal income taxes and the withholding of Social Security and tax contributions unconstitutional. Not only were his attempts unsuccessful, but he was required to pay $1,500 in attorney’s fees, $5,000 in sanctions under Rule 11, Federal Rules of Civil Procedure, for filing a frivolous lawsuit and $1,500 as sanctions under Rule 28, Federal Rules of Appellate Procedure, for fifing a frivolous appeal. 1

Mr. Cheek has been party to criminal proceedings before us as well. In 1987, Cheek was charged in a superseding indictment with six counts of willfully failing to file a federal income tax return for the years 1980, 1981, and 1983 through 1986, in violation of 26 U.S.C. § 7203. He was further charged with three counts of willfully attempting to evade his income taxes for the years 1980, 1981 and 1983 in violation of 26 U.S.C. § 7201. On November 12, 1987, Cheek was convicted by a jury on all counts and sentenced to jail for a year and a day. On appeal, we affirmed his conviction, United States v. Cheek, 882 F.2d 1263 (7th Cir.1989), but the Supreme Court reversed it on the basis of erroneous jury instructions, Cheek v. United States, 498 U.S. 192, 111 S.Ct. 604, 112 L.Ed.2d 617 (1991), the Court holding that a good-faith misunderstanding of the law or a good-faith belief that one is not violating the law negates willfulness, irrespective of whether the claimed belief is objectively reasonable.

In 1992, following a second jury trial before another district judge, who instructed the jury in strict accordance with the Supreme Court’s new formulation of willfulness, Cheek was again convicted on all counts, was sentenced to jail for a year and a day and was fined $62,000. It is from the conviction upon retrial and sentence that he now appeals.

Other questions are presented, but essentially Cheek argues that the district court erred by refusing to instruct the jury on a reliance of counsel defense, that his due process rights were violated when a heavier penalty was imposed after his second trial, and that his indictment should have been dismissed because the time limitations of the Speedy Trial Act were not observed. We will affirm the judgment of the district court in all respects.

Jurisdiction was proper in the trial court based on 18 U.S.C. § 3231. This court has jurisdiction under 28 U.S.C. § 1291 following the fifing of a timely appeal under Rule 4(b) of the Federal Rules of Appellate Procedure.

I.

Cheek had been a pilot for American Airlines since 1973 and filed federal income tax returns through 1979 but thereafter ceased to file returns, except for 1982, when he filed a frivolous return. Prior to 1980, while employed by American Airlines, Cheek filed an Internal Revenue Service W-4 form claiming 25 withholding allowances. In 1980, he changed the number of withholding allowances on his W-4 first to 39 and then to 60. 2 The IRS and Cheek exchanged correspondence regarding his bizarre W-4 forms. The *1060 IRS eventually sent a letter to Cheek stating that his W-4 with 39 exemptions was unacceptable. In December of 1980, an American Airlines tax attorney advised Cheek that he was not exempt from withholding and suggested that he seek advice of competent counsel.

From 1981 through 1984, with Cheek continuing to file W-4 forms claiming totally exempt status, Cheek and American Airlines corresponded regularly. Eventually, the IRS notified American Airlines not to honor the W-4s filed by Cheek, and American Airlines thereafter withheld the proper deductions from Cheek’s wages. What followed over the course of several years was a series of lawsuits filed by Cheek against various defendants, including his employer, individual employees of American Airlines, the Commissioner of Internal Revenue and various IRS employees, in an attempt to prevent the withholding of any taxes from his wages. For example, in 1984 he joined with others in an abortive attempt to seek a judgment against the Commissioner of Internal Revenue declaring that the withholding of taxes from their wages and the payment of these taxes violated the Sixteenth Amendment. Schaut v. United States, 585 F.Supp. 137 (N.D.Ill.1984). In 1985, he sued several IRS employees, seeking reimbursement of income and social security taxes withheld by American Airlines, contending that “the withholding of income and social security taxes amounted to an unconstitutional taking of property and that his wages [were] not taxable income.” Cheek v. Doe, 110 F.R.D. 420, 421 (N.D.Ill.1984). All of these suits were dismissed with prejudice.

Cheek described his various lawsuits as an attempt to prove his belief that the law did not require him to pay tax on what he described as his right to work. In addition to pursuing his own lawsuits, Cheek also attended the criminal tax trials of various friends and associates. All of these trials resulted in convictions. See United States v. Kalita, 712 F.2d 1122 (7th Cir.1983).

Cheek testified that many of his actions were based on legal advice. Throughout the time period covered in the indictment, Cheek claims to have conferred with several attorneys regarding his research, beliefs and lawsuits.

On March 13, 1992, after his second trial, Cheek was sentenced by Judge Zagel to one year and one day imprisonment, and he was placed on five years probation. The conditions of probation were that he cooperate with the IRS in a civil determination of his tax liabilities, that he pay all back taxes, interest and penalties, and that he file current tax returns. Finally, Cheek was ordered to pay a fine of $62,000 immediately, a fine that included costs of incarceration and supervision.

The sentence imposed by Judge Zagel in the second trial was essentially the same as that imposed by Judge Plunkett in the first trial, except for the imposition of the fine.

II.

The standards utilized in reviewing the issues presented are familiar.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
3 F.3d 1057, 72 A.F.T.R.2d (RIA) 5727, 1993 U.S. App. LEXIS 21537, 1993 WL 317649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-john-l-cheek-ca7-1993.