Andrews Amankwah - Page 3




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          net loss of about $8,000).  That year, petitioner was attending             
          an M.B.A. program in Finance.  He also earned about $28,000                 
          working on a part-time basis.  In 1996, Ms. Chester's Schedule C            
          business was on the rebound (earning a net profit of $8,794).               
          That year, Ms. Chester also earned income from two other sources            
          in the total amount of $3,309.53.  In 1996, petitioner was still            
          attending the M.B.A. program for about half the year (he received           
          his M.B.A. in Finance in May 1996), and he earned $30,593.09                
          working on a part-time basis.                                               
               Faced with financial difficulties, petitioner urged Ms.                
          Chester to withdraw funds from her retirement account.  He                  
          assured her that once he earned his M.B.A. in Finance, he would             
          obtain a high paying position and that they would thereafter                
          replenish her retirement savings.  Thus, during 1995 and 1996,              
          Ms. Chester made a series of withdrawals from her retirement                
          account totaling $47,382 for 1995 and $22,030 for 1996 (gross               
          distributions).  Funds were distributed in the form of checks and           
          were deposited in a joint bank account maintained and used by               
          both petitioner and Ms. Chester.                                            
               Petitioner filed joint returns with Ms. Chester for 1995 and           
          1996.  On the 1995 return, petitioner and Ms. Chester reported a            
          taxable pension and annuities distribution in the amount of                 
          $45,500.  On the 1996 return, however, they failed to report any            








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