Estate of Paul Campana - Page 6




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               Because Mr. Alfano felt that the Campanas would not recover            
          their initial investment in CNC, he decided not to treat CNC                
          distributions as income on the 1991 Federal income tax return.              
          If petitioner and Mr. Campana later were to recover their                   
          investment, Alfano felt that an amended return could be filed to            
          change their reporting position.  Petitioner did not request Mr.            
          Alfano to prepare subsequent years' returns.                                
               During the year 1992, petitioner and Mr. Campana received              
          from CNC distributions of $58,602.  None of the distributions was           
          reported on the joint Federal income tax return for the year.               
          The return was prepared at "Green Baker and Associates" and                 
          signed by Gail Campana as surviving spouse.                                 
               Petitioner's individual returns for 1993, 1994, and 1995               
          were prepared by Burton Zocks.  During the year 1993 petitioner             
          received from CNC distributions of $104,982.  None of the                   
          distributions during 1993 was reported on petitioner's 1993                 
          Federal income tax return.  The 1992 joint return, which Mr.                
          Zocks reviewed before preparing the 1993 return, reported no CNC            
          income, and petitioner made no mention of CNC to Mr. Zocks at the           
          time.  There was a large increase in petitioner's CNC                       
          distributions beginning in 1993 because she made a large                    
          investment in 1993.  As of June of 1993 petitioner and her late             
          husband had invested $258,578 in 12 CNC contracts.                          








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