Marvin L. Barmes and Barbara J. Barmes - Page 22

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               As such, I am a “Nonresident Alien” {as such ‘word of                  
               art’ is defined in IRC Sec. 7701(b)(1)(B)} under United                
               States Tax Laws [Title 26 United States Code and the                   
               Internal Revenue Code][.]                                              
               26 CFR Sec 31.3401(a)(6)-1(b) “Remuneration paid to a                  
               nonresident alien exempted from wages                  
               and hence is not subject to withholding.”                              
               Petitioners issued to Susan Thomas Barmes and to Jennifer              
          Burgess16 Form W-2, Wage and Tax Statement (Form W-2), for the              
          respective wages that they earned for the period January 1, 1995,           
          through October 12, 1995.  As of October 23, 2000, the date of              
          the trial in this case, petitioners, Sandbar Wholesale Trust, and           
          Sandbar Real Estate Trust had not issued to the business employ-            
          ees Forms W-2 or Forms 1099-MISC, Miscellaneous Income (or any              
          other type of Form 1099), for any periods after 1995.                       
          Petitioners’ Real Properties                                                
               At all relevant times until at least October 12, 1995,                 
          petitioners owned the two parcels of real property on which the             
          business locations were situated.  At those times, petitioners              
          also owned approximately 17.73 acres of land located at 6393 E.             
          Overhead Road, Fritchton, Indiana (the Fritchton property), which           
          was approximately 6.5 miles from the business locations.  Peti-             
          tioners’ personal residence and an old farmhouse (old farmhouse)            
          were situated on the Fritchton property.  In 1994, petitioners              
          remodeled the old farmhouse and furnished it as an office.                  

               16During the year at issue, Susan Thomas Barmes and Jennifer           
          Burgess were petitioners’ daughters-in-law.                                 

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