United States v. Blue

Background

In 1962 the Internal Revenue Service told Ben Blue he might face criminal tax prosecution. In 1963 the Service made jeopardy assessments against him, his wife, and his wholly owned corporation for tax years 1958–1960, seized known assets, and recorded tax liens. Statutory deficiency notices gave Blue ninety days to file petitions in the Tax Court, and he filed petitions contesting the Commissioner’s determinations. More than a year later the Government indicted Blue on six counts charging willful attempts to evade personal income taxes for 1958–1960 and false corporate returns for the same years.

Reasoning

The District Court dismissed the indictment, finding that the jeopardy assessments and Tax Court proceedings had compelled Blue to incriminate himself and so the prosecution should be ended. The Supreme Court disagreed. It held that even if the Government had obtained incriminating evidence in violation of the Fifth Amendment, the appropriate remedy is to suppress that evidence at trial, not to bar the prosecution entirely. The Court treated the District Court’s dismissal as a ruling that would end the cause, which allowed direct appeal, but on the merits it reversed and sent the case back to the District Court.

Real world impact

This ruling lets criminal tax prosecutions continue despite prior IRS jeopardy assessments and related Tax Court petitions, while preserving defendants’ rights to seek suppression of illegally obtained evidence. The case is remanded so Blue can press his Fifth Amendment objections at trial or in suppression motions; other defenses were not finally resolved.