-11-
dividends, return of basis, and long-term capital gain. On the
basis of that analysis, respondent has since conceded that the
1990 distributions resulted in dividend income of $124,744 and
long-term capital gains of $154,017 and that the 1991
distributions resulted in dividend income of $78,494 and long-
term capital gains of $118,579.
F. The Les’ Indictment
Also during the audit, the Commissioner referred the Les’
case to his criminal investigation division (CID). During the
course of the investigation by the CID, neither the Les nor their
attorneys challenged petitioner’s reporting position that he
operated his medical practice through a corporation named “David
Dung Le, M.D., Inc.”.9 Subsequent to this referral, an
indictment was filed against the Les on April 3, 1997, generally
charging each of them with: (1) Two counts (counts 1 and 2) of
violating section 7206(1) as to their 1990 and 1991 Federal
individual income tax returns and (2) two counts (counts 3 and 4)
of violating section 7206(1) as to DDL’s 1990 and 1991 Federal
corporate income tax returns. See United States v. David Dung Le
and Kim Huong Le, Central District of California, Case No. SA CR
97-33. The gist of the indictment was that the Les had willfully
9 In fact, we understand petitioners’ counsel, Mr.
Hagendorf, to have first challenged this reporting position in
petitioners’ motion for summary judgment filed with the Court on
Apr. 25, 2002.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011