- 8 -
And here are a few from Kai’s:
! 186 hours in 1999 to show a single vacant apartment to
prospective tenants.
! 200 hours of answering calls from prospective tenants
in both years.
! 48-50 hours to wrap coins from laundry machines in one
of the apartment buildings.
But because the brothers had to show not only the time they
spent on partnership business, but that it was greater than the
time they spent on other jobs, the exaggeration in their logs of
real estate work was matched by understatements of time spent at
their full-time jobs. Ulysses calculated his hours spent working
for the IRS by deducting his sick leave and vacation from a full-
time schedule. But the Commissioner introduced time and
attendance records from the IRS, showing that Ulysses hadn’t used
all his available sick and annual leave. This forced him to take
the dubious position that he routinely filled in his own time-
and-attendance records inaccurately.
Kai Lee’s testimony on this point was no better. He swore
that he worked for the corporation that he owned--a corporation
that produced more than $60,000 in gross receipts for both years
--only 37 hours in 1999, and 3 hours in 2000. He likewise
claimed to have spent only 135 hours working for 101 Positron
(the diagnostic facility that he owned and operated). But when,
during the exam process, he argued that 101 Positron was not a
passive activity, he told the appeals officer that he spent “at
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Last modified: May 25, 2011