Wale O. Osijo - Page 9

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          taxable years 1989 through 1992, we hold that petitioner did not            
          fail to report income.                                                      
               For taxable year 1993, respondent determined, inter alia,              
          that petitioner received interest income in the amount of $8,862,           
          of which $18 is interest earned on funds held at Glendale Federal           
          Bank and $8,844 is interest that had accrued on the “settlement”            
          funds held by Ms. Michell.  Petitioner concedes the $18 amount,             
          but contests the fact that he received interest income from Ms.             
          Michell.  Allegedly, when Ms. Michell received the $250,000                 
          settlement check from Home Insurance, she deposited it into an              
          interest-bearing trust account.  The record before us, however,             
          does not include any details of the account, including the terms            
          of the trust or in which years and in what amounts said interest            
          was earned.                                                                 
              Petitioner currently is contesting the validity of the                 
          settlement Ms. Michell arranged on his behalf.  The California              
          Court of Appeals has held that Ms. Michell is entitled to legal             
          fees of only $100,0006, not the $112,500 she retained.                      
          Petitioner’s claim against Ms. Michell for breach of fiduciary              
          duty remains unresolved.                                                    
               Respondent has not offered any evidence in support of the              
          determination that petitioner had unreported interest income of             
          $8,844 in 1993.  The purported distribution statement was offered           

          6  This is 40% of the $250,000 settlement amount.                           

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