David Daniel and Annette Daniel - Page 4

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            to First Union and all of the executives, including Mr. Rabassa                              
            were terminated.  He could not find employment in the banking                                
            industry.                                                                                    
                  He was first employed by the IRS in 1990 as a taxpayer                                 
            service representative at $16,000 per year.  In May 1993, Mr.                                
            Rabassa was an account representative in the Automated Collection                            
            System Unit (ACS) of the Collection Division; his supervisor was                             
            Mrs. Daniel.  One of the responsibilities of ACS was to contact                              
            persons who had not filed tax returns when required.  ACS would                              
            often prepare a return for delinquent taxpayers and submit it to                             
            them for signature.                                                                          
                  While working under the supervision of Mrs. Daniel, Mr.                                
            Rabassa kept notes on the way the ACS dealt with taxpayers.                                  
            Those notes included his observations regarding training issues,                             
            assignments, and what he considered to be inappropriate comments                             
            between ACS employees and taxpayers that he intended to take up                              
            with management.  As Mr. Rabassa testified:  "Some of the                                    
            statements made by taxpayer representatives (IRS) to taxpayers                               
            were totally inappropriate and should be brought to a                                        
            discipline--not discipline; that's a wrong choice of words--                                 
            should have training on better customer service skill."                                      
                  Mr. Rabassa had received some training from the IRS in                                 
            preparing tax returns for delinquent taxpayers.                                              
                  Mrs. Daniel entered her and Mr. Daniel's names and an                                  
            identifying number on Form 4684, casualties and thefts, which                                
            petitioners attached to their 1992 return.  All of the casualty                              



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