Estate of Harvey Feinsmith, Deceased, Betty Feinsmith, Executrix - Page 13




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               $337,300.28.  During the years 1983 and 1984, and                      
               because of the false deductions of $337,300.28 on the                  
               corporate tax returns, I received a total of $47,792.71                
               in income which I did not report on my tax returns for                 
               those two years, but which was reported on my amended                  
               returns.  I did not receive any income as a result of                  
               Randy Hall, Inc.’s false deductions for the fiscal year                
               ending January 31, 1981 because I was not a shareholder                
               for any portion of that year.                                          
                    3.  Subsequent to the filing of these amended                     
               returns, it came to our attention that certain                         
               additional false deductions for non-existent purchases                 
               had been claimed on one of the original corporate tax                  
               returns, but these deductions had not been discovered                  
               at the time of filing the amended returns.                             
                    4.  The additional false deductions amounted to                   
               $156,960.90, and affected the corporate tax return for                 
               the tax year ending January 31, 1984, and my personal                  
               return for the calendar year ended December 31, 1984.                  
               * * *  These false deductions resulted in additional                   
               income to me of $52,320.20 which I did not report on my                
               original or amended tax return but which is being                      
               reported on my second amended return which is being                    
               filed along with a second amended corporate return.                    
               Pursuant to the cooperation agreement, Randy Hall filed a              
          second amended 1983 return on or about September 2, 1987.  On               
          that return, Randy Hall reported a $156,961 increase in income              
          resulting from a reduction of cost of goods sold due to                     
          additional false deductions and an offset to that amount by a               
          $206,651 net operating loss carryback from its fiscal year ended            
          January 31, 1987.  Randy Hall attached to its second amended                
          return a statement which provided that it had ascertained after             
          filing its first amended return for that year that it had claimed           
          on its original 1983 return additional false deductions                     
          aggregating $156,961.  The statement provided that these                    





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