United States v. Brown
548 F.2d 1194 (1977)

Facts:  D was charged for preparing false tax returns for others.  One agent testified that out of 160 tax returns prepared by D, 90-95% overstated itemized deductions.  This statement was admitted to show “willfulness” on D’s part.  D claims that since this statement of the agent was based on the statements made by people for whom he prepared the tax files and who were not in court to testify, this direct product of those out-of-court statements should be inadmissible under the hearsay rule.

Issue: Was the testimony of the agent which was the direct product of out-of-court statements admissible?

Holding: No

Rationale:  Here the agent could not have reached the conclusion without relying on the information he gained from out-of-court statements.  Since the declarants are not in court to be cross-examined, this direct product of those statements should be excluded.