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deducted for escrow, resulting in a net of $832 that was paid to
petitioner. No taxes were withheld. Petitioner provided Ortega
computer printouts for 10 weeks, and, according to the last
printout, for the week ending April 30, 1994, there was a balance
of $856 in escrow. Most of the advance amounts were for $60 or
$80, with four for amounts of $500, $350, $250 and $120.
Also detailed on the computer printouts are “contributions”
to a vehicle acquisition fund (VAF). Contributions to this fund
are made weekly, but it does not appear that these contributions
came from petitioner’s gross wages.
Petitioner was frustrated that he was not earning as much as
he had hoped working for Ortega, and he quit on May 2, 1994.
According to the last printout for the week ending April 30,
1994, petitioner had gross earnings “to date” of $8,981.
Petitioner argued with Mr. Ortega about money that was owed to
him,3 and Mr. Ortega agreed to pay him this money. Accordingly,
subsequent to May 2, 1994, Ortega paid petitioner $1,319.
Petitioner received a Form 1099-MISC from Ortega which
reflected that he earned $14,288. Petitioners did not report
this income on their 1994 income tax return. Petitioners did not
report this amount because they did not believe this to be the
correct amount they received. In 1997, petitioners filed an
3 Petitioner testified that there were weeks when he was
not paid. Petitioner did not provide printouts for 7 consecutive
weeks from Mar. 12, to Apr. 23, 1994. According to the “year-to-
date earnings” reflected on the printouts for the weeks prior to
and after this period, petitioner grossed $1,429 in those 7
weeks.
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