Robert J. Geary - Page 8




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               Section 162(e)(2)(B) prohibits a deduction for any amount               
          paid or incurred "in connection with any attempt to influence the            
          general public, or segments, thereof, with respect to legislative            
          matters, elections, or referendums."                                         
               Petitioner contends that section 162(e)(2)(B) is                        
          inapplicable in this case, but concedes that if this Court finds             
          section 162(e)(2)(B) applicable, then expenses incurred by                   
          petitioner in obtaining voting slate approval for Proposition BB             
          from various political groups totaling $1,200 would be                       
          nondeductible.  Petitioner contends, however, that expenses                  
          incurred by petitioner for the use of signature gatherers would              
          not be prohibited since petitioner's use of signature gatherers              
          was not an "attempt to influence the general public".  We                    
          disagree.                                                                    
               Petitioner contends that his sole purpose in getting the                
          Officer O'Smarty issue on the ballot was to let the voters decide            
          the issue.  Petitioner thereby claims a disinterest in the                   
          outcome of the vote though his actions at the time indicate                  
          otherwise.                                                                   
               Petitioner organized his Committee with the express purpose             
          of "saving" Officer O'Smarty.  Indeed the very name of the                   
          Committee, the Committee to Save Puppet Officer Brendan O'Smarty,            
          is a good indication of its purpose.  Petitioner funded the                  
          ballot proposition entirely through the Committee and paid the               
          signature gatherers with Committee funds.                                    




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