Recent Developments in the Federal Sentencing Guidelines for Tax Evasion: United States v. Thomas and Constance Twieg
Kathryn G. Holwill
In United States v. Twieg, the United States Court of Appeals for the Seventh Circuit upheld the district court’s sentencing of Thomas and Constance Twieg (the “taxpayers”) for tax evasion. In its calculation of the taxpayers’ sentences under the Federal Sentencing Guidelines (“Guidelines”), the Eastern District of Wisconsin included the taxpayers’ evasion of self-employment taxes in addition to their unpaid regular income taxes. The Seventh Circuit held this calculation was proper under the Guidelines.Part I of this Note summarizes how the Guidelines are applied to federal crimes in general, and to tax evasion in particular. Part II explains the decisions of both the district and appellate courts. Part III analyzes the application of the Guidelines in Twieg and discusses both the deterrent effect of including the loss of self-employment taxes in the total tax loss and the rationale for doing sounder the proportionality principle of the Guidelines.
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