Iowa Supreme Court Attorney Disciplinary Board v. Karen A. Taylor

Summary

The Iowa Supreme Court reviewed an attorney disciplinary proceeding involving Karen A. Taylor’s willful failure to file federal and state income tax returns for tax years 2003 through 2013. The court held that her conduct violated applicable Iowa professional-conduct and disciplinary rules. The court suspended Taylor’s license to practice law for a minimum of six months, rejecting the grievance commission’s recommendation of a suspension of no more than thirty days.

Holdings

1. An attorney whose income exceeded the filing threshold and who willfully failed to file required federal and state income tax returns committed misrepresentation, a deceitful offense involving moral turpitude, and conduct adversely reflecting on fitness to practice law under disciplinary rules 1-102(A)(3), 1-102(A)(4), and 1-102(A)(6).
2. A willful failure to file legally required federal and state income tax returns constitutes commission of a criminal act reflecting adversely on a lawyer's honesty, trustworthiness, or fitness, even if no criminal charges are filed.
3. An attorney's willful failure to file income tax returns despite knowing of the legal duty to file constitutes conduct involving dishonesty, fraud, deceit, or misrepresentation under rule 32:8.4(c); negligence alone would not suffice.
4. Taylor's license to practice law must be suspended indefinitely, with no possibility of reinstatement for six months, because the extended willful tax noncompliance and repeated violation of a court order warranted a substantial suspension despite significant mitigating circumstances.

Questions Presented

1. Whether Taylor's failure to file federal and state income tax returns for tax years 2003 and 2004 violated disciplinary rules 1-102(A)(3), 1-102(A)(4), and 1-102(A)(6) of the Iowa Code of Professional Responsibility for Lawyers.
2. Whether Taylor's willful failure to file federal and state income tax returns for tax years 2005 through 2013 violated Iowa Rules of Professional Conduct 32:8.4(b) and 32:8.4(c).
3. What sanction was appropriate in light of the violations and the aggravating and mitigating circumstances.

Disposition

other