Marchetti v. United States

Background

A person who ran a business accepting wagers in Connecticut was convicted under federal wagering tax laws for failing to register and pay a $50 occupational tax and for conspiracy to evade the tax. The registration form (Form 11‑C) asked for names, addresses, and other details; the tax system required stamps and made paid registrants publicly listable and available to prosecutors. The petitioner had claimed the Fifth Amendment right against self‑incrimination and the Court of Appeals had affirmed the convictions, relying on earlier cases.

Reasoning

The Court examined whether the registration and tax rules forced people to give information that could be used against them. It found widespread state and federal prohibitions on gambling and noted that tax records and stamps were routinely shared with prosecuting authorities under §6107 and Treasury practice. The Court rejected prior decisions that denied the privilege in this context, held the registration and tax requirements create real and substantial hazards of self‑incrimination, and determined that doctrines like the required‑records rule did not apply. The Court also declined to rewrite the statutes by imposing use‑restrictions on the Government’s access to tax information.

Real world impact

The Court reversed the convictions and held that anyone who properly asserts the Fifth Amendment may not be criminally punished for failing to register or pay the wagering occupational tax under the statute as written. The decision does not forbid Congress from taxing or regulating gambling, but it requires Congress to craft methods of collection and reporting that do not plainly compel incriminating disclosures. The ruling leaves open legislative alternatives and does not declare the tax provisions always invalid.

Dissents or concurrances

The opinion notes separate concurring opinions and a dissent, indicating some Justices wrote to add or contest points, but the main decision reverses the convictions.