Vernon W. Hartman, Jr. and Virginia M. Hartman - Page 5




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                  By notice dated May 7, 1997, the Court set the case                  
             for trial on October 14, 1997.  When the case was called                  
             for trial on October 14, 1997, respondent and Mr. Hartman                 
             appeared before the Court and represented that they were                  
             going to meet with a revenue agent to review Mr. Hartman's                
             records.  Mr. Hartman represented to the Court that he had                
             all of his "documentation".  In response, the Court                       
             directed as follows:  "All right.  I'll recall the case on                
             Thursday [October 16, 1997], and at that point, I expect                  
             everything to be taken care of.  If not, we'll be ready to                
             go to trial."                                                             
                  When the parties appeared before the Court on                        
             October 16, 1997, respondent's attorney advised the Court                 
             that the parties had made progress, but they had not                      
             finished reviewing petitioners' documentation.                            
             Respondent's attorney further represented that they needed                
             3 or 4 days to complete their review.  On the basis of                    
             these representations, the Court continued the case and                   
             directed the parties to file a joint status report in 30                  
             days with the expectation that the case would be resolved                 
             in that period.  The Court made the following comment to                  
             Mr. Hartman:                                                              








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