David D. Le, a.k.a. David Dung Le, a.k.a. Dung V. Le and Kim Huong Le, a.k.a. Kim Le, et al. - Page 16

                                        -16-                                          
          Commissioner, 115 T.C. 43, 84 (2000), affd. 299 F.3d 221 (3d Cir.           
          2002).                                                                      
               Petitioner’s testimony is clearly and convincingly                     
          contradicted by the credible evidence in the record.  First,                
          petitioner had during the relevant years a business checking                
          account in the name of DDL.  That account was actively used by              
          DDL to cash all of the nondiverted checks that DDL received for             
          services performed by petitioner in his capacity as DDL’s                   
          employee.  Second, petitioner filed 1990 and 1991 Federal                   
          corporate income tax returns reporting DDL’s income and expenses            
          for those years as corporate items.  Those returns, which were              
          signed personally by petitioner in his capacity as a DDL officer,           
          reveal that petitioner considered himself an officer of a                   
          corporation named DDL and that DDL was realizing income and                 
          incurring expenses as if it were an active and ongoing corporate            
          business.  The returns also reveal that DDL owned assets as of              
          the end of both 1990 and 1991.  Given the additional fact that              
          DDL during the subject years also reported and paid corporate               
          estimated income tax to the State of California, we do not accept           
          petitioners’ claim that the corporate form of the medical                   
          practice was abandoned by petitioner before the subject years.              




               10(...continued)                                                       
          positions herein.                                                           





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