Timothy is on trial for tax evasion. The prosecution alleges…
Timothy is on trial for tax evasion. The prosecution alleges that he intentionally understated his income in 2020 and thus underpaid his taxes by over $100,000. The prosecution has three pieces of evidence it would like to admit: Part of a letter Timothy wrote to the IRS in 2021, in response to a letter the IRS had sent him after filing a civil claim against him and demanding that he pay back taxes for 2020. In the letter, Timothy denied owing any taxes or making any mistake in his 2020 return, but at the end of the letter he wrote: “I would agree to pay $105,000 in back taxes and penalties to settle the issue.” The government seeks to admit this statement from the letter. One of Timothy’s business partners will testify that Timothy “is the kind of guy who would always try to cut corners and get away with something if it meant he could make some more money.” A few weeks before trial, Timothy agreed to plead guilty to a lesser crime of obstructing official business; however, that plea was withdrawn after the judge refused to go along with the prosecutor’s lenient sentence recommendation. Which (if any) of the three are admissible?