Jerry S. Payne - Page 20

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          to be treated as taxable income.  The amounts shown as conceded by          
          respondent are to be treated as nontaxable income.                          
                                                                                     
        Total Deposits Into      Deposits Conceded           Other Checks Conceded    
   Year Petitioner’s Bank AccountsBy Petitioner  By Respondent  By Petitioner  By Respondent
   1987      $533,388            $234,453       $253,477  $20,311        $19,249      
   1988      505,979             182,338        278,757   --             --           

               The above deposits and other checks conceded by petitioner as          
          taxable income generally reflect funds petitioner received as legal         
          and management fees from 2618 Inc and other funds that petitioner           
          received in connection with his law practice.                               

          Bank Deposits and Other Checks Still in Dispute                             
               For 1987, the treatment as taxable income of $45,458 in bank           
          deposits and $10,677 in checks made payable to petitioner but not           
          deposited into petitioner's bank accounts remains disputed by the           
          parties.                                                                    
               For 1988, the treatment as taxable income of $44,884 in bank           
          deposits remains disputed by the parties.                                   
               With regard to the $45,458 in bank deposits still in dispute for       
          1987, the following schedule reflects for each bank account the date,       
          payor, and amount of each bank deposit:                                     












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