U.S. v. Psihos

Dist. Ct. did not err in sentencing defendant to 24-month term of incarceration on charge of making false statements on his tax return after finding that loss to IRS arising out of defendant’s under-reporting of his restaurant’s receipts was $837,724. While defendant argued that said loss should have been reduced by cash payments made by defendant for operating expenses of restaurant, Dist. Ct. could properly ignore said claimed expenses where defendant had failed to produce any invoices supporting said cash payments, and where, under Chavin, 316 F.3d 666, said “unclaimed deductions” had no relevance in tax loss calculation. Moreover, Dist. Ct. also did not clearly err in imposing $837,724 restitution order based on tax loss calculation where defendant had failed to produce contemporaneous documentation of his alleged cash payments made on behalf of restaurant.