Section 2844 | CALCRIM (Jury Instructions)

of taxable income and (2) the money or property the defendant received
during the year did not come from nontaxable sources. If the People
have proved that: (a) the defendant’s net worth increased during
<insert year alleged>, (b) the defendant had one or more
sources of taxable income, and (c) the money or property the defendant
received during the year did not come from nontaxable sources, then you
may but are not required to conclude that the money or property
received was taxable income to the defendant. If you have a reasonable
doubt about whether the People have proved (a), (b), or (c), you may not
take any increase in the defendant’s net worth into account in applying
the cash expenditures method.]
In order to rely on an increase in the defendant’s net worth to prove
unreported taxable income under the cash expenditures method, the
People must prove the defendant’s net worth at the starting point with
reasonable certainty. Here the starting point is January 1,
<insert year alleged>. The People are not required to prove the exact
value of each and every asset defendant owned at the starting point.
However, the People must prove beyond a reasonable doubt that all the
assets defendant owned at the starting point were not enough to account
for any proven increase in the defendant’s net worth during the year.
In deciding whether the defendant’s net worth at the starting point has
been proved with reasonable certainty and whether the People have
proved that any money or property the defendant received during the
year did not come from nontaxable sources, consider whether law
enforcement agents sufficiently investigated all reasonable “leads”
concerning the existence and value of other assets and sources of
nontaxable income. Law enforcement agents must investigate all
reasonable leads that arise during the investigation or that defendant
suggests regarding assets and income. This duty to reasonably investigate
applies only to leads that arise during the investigation or to
explanations the defendant gives during the investigation. Law
enforcement agents are not required to investigate every conceivable
asset or source of nontaxable funds.
If you have a reasonable doubt about any of the following:
A. Whether the investigation reasonably pursued or refuted the
defendant’s explanations or other leads regarding defendant’s
assets or income during the year,
B. Whether the People have proved the defendant’s net worth at the
beginning of
<insert year alleged> to a reasonable
degree of certainty,
OR
C. Whether the People have proved that any nondeductible
TAX CRIMES
CALCRIM No. 2844
709