## Facts

- Akio and Fusako Kawashima, lawful permanent residents, were convicted of federal tax crimes arising from materially false tax returns.
- Akio Kawashima pleaded guilty to willfully making and subscribing a false tax return under 26 U.S.C. § 7206(1).
- Fusako Kawashima pleaded guilty to aiding and assisting in the preparation of a false tax return under 26 U.S.C. § 7206(2).
- The conduct involved underreporting income, producing a government revenue loss alleged to exceed $10,000.
- Immigration authorities charged both as removable for conviction of an aggravated felony under 8 U.S.C. § 1227(a)(2)(A)(iii), relying on 8 U.S.C. § 1101(a)(43)(M)(i) (offense involving fraud or deceit with loss over $10,000), not § 1101(a)(43)(M)(ii) (tax evasion under 26 U.S.C. § 7201).

## Issues

1. Whether convictions under 26 U.S.C. § 7206(1) and § 7206(2) are offenses that “involve fraud or deceit” under 8 U.S.C. § 1101(a)(43)(M)(i) when the government’s loss exceeds $10,000.
2. Whether the INA’s separate aggravated-felony provision for tax evasion under 26 U.S.C. § 7201 in 8 U.S.C. § 1101(a)(43)(M)(ii) implies that other tax offenses are excluded from § 1101(a)(43)(M)(i).

## Decision

- The Supreme Court affirmed the Ninth Circuit.
- Convictions under 26 U.S.C. § 7206(1) and § 7206(2) qualify as aggravated felonies under 8 U.S.C. § 1101(a)(43)(M)(i) when the revenue loss exceeds $10,000.
- Applying a categorical analysis, the Court concluded that the statutory elements of § 7206(1) and § 7206(2) necessarily require deceitful conduct, even though “fraud” or “deceit” is not an express element.
- The Court rejected the argument that § 1101(a)(43)(M)(ii) limits tax-related aggravated felonies to § 7201; clause (ii) is a narrower, tax-evasion-specific category that does not displace clause (i)’s broader coverage.
- The case left open, for further agency determination, whether Fusako Kawashima’s conviction met the over-$10,000 loss requirement.

## Legal Principles

- An offense “involves fraud or deceit” under 8 U.S.C. § 1101(a)(43)(M)(i) if its elements necessarily entail fraudulent or deceitful conduct, even if fraud or deceit is not labeled as a formal element.
- Under the categorical approach, the inquiry focuses on the statute of conviction and its elements, not the defendant’s particular conduct, to determine whether the offense involves fraud or deceit.
- A conviction under 26 U.S.C. § 7206(1) (willfully signing a return verified under penalty of perjury that the defendant does not believe is true and correct as to every material matter) involves deceit.
- A conviction under 26 U.S.C. § 7206(2) (willfully assisting in preparing or presenting a return that is fraudulent or false as to a material matter) involves deceit.
- Clause (i) of 8 U.S.C. § 1101(a)(43)(M) can cover tax offenses; clause (ii) does not impliedly exclude other tax crimes from clause (i) when the statutory text of clause (i) is broad and the loss threshold is met.

## Conclusion

The Court held that materially false-return offenses under 26 U.S.C. § 7206(1) and § 7206(2) are aggravated felonies for immigration purposes when the government’s loss exceeds $10,000, making noncitizens convicted of such offenses removable under the INA.


Kawashima v. Holder, 565 U.S. 478 (2012)