Opinion ID: 2756585
Heading Depth: 2
Heading Rank: 5

Heading: Estimated Total Loss Amount

Text: In addition to evidence of the specific conduct charged in the superseding indictment, the government presented evidence of the total tax loss that resulted from defendant Barber’s fraud scheme. IRS agent Douglas Franzen reviewed a database of 434 tax returns that reported HSH income, all prepared by Barber’s business for the tax years 2006 through 2008. HSH was a very rare type of income that Franzen did not recall seeing on returns prior to this case. To calculate the total amount of tax loss, Franzen conducted a statistical sampling of 105 of the 434 tax returns that reported HSH income. The sampling was then projected onto the total population of 434. Franzen opined, with 95% certainty, that these 434 returns from tax years 2006 through 2008 resulted in a loss of over $700,000, which was a very conservative estimate.