Following a conviction for federal tax fraud, the Ninth Circuit held that the district court properly included defendant’s unpaid state taxes in the tax loss computation on which his term of imprisonment and his restitution order were based. Moreover, the defendant was not entitled to an imputed deduction for his unpaid state taxes. The 9th Circuit concluded that the district court properly applied the sentencing enhancement because defendant’s actions obstructed an IRS audit.
The case is: United States v. Yip, 08-10235.