Timothy J. Glenn - Page 5

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               During taxable year 2001, Ms. Glenn earned wages of                    
          $24,577.99 from Community Unit School District #220, and Federal            
          income tax of $1,704.43 was withheld.  Also during tax year 2001,           
          petitioner and Ms. Glenn received pension and annuity income of             
          $165,838 from petitioner’s Fidelity Investments account from                
          which $33,167.58 of Federal income tax was withheld.                        
               The $165,838 reported as pension and annuity income during             
          taxable year 2001 by petitioner and Ms. Glenn was a distribution            
          from petitioner’s section 401(k) plan maintained by his employer,           
          Kronos, Inc., through T. Rowe Price.  Petitioner had been                   
          employed at Kronos, Inc., since 1988.  This distribution was made           
          approximately in June of 2001.  Petitioner’s reasons for                    
          requesting the distribution were that he was leaving Kronos,                
          Inc., and he and Ms. Glenn were considering divorce and wanted to           
          pay off outstanding bills to make their divorce “as simple as               
          possible”.                                                                  
               Petitioner received a check from Fidelity Investments in the           
          amount of $132,670.30.3  In August of 2001, petitioner deposited            
          $123,700 into his and Ms. Glenn’s joint checking account with               
          Harris Trust & Savings Bank.4  Petitioner could not recall why              

          3This amount represents the total sec. 401(k) distribution                  
          of $165,838, less Federal income tax withheld of $33,167.58.                
          4Petitioner transferred $100,000 from the joint checking                    
          account into a joint savings account which was also held with               
          Harris Trust & Savings Bank.  Petitioner transferred money from             
                                                             (continued...)           





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