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State of $2,880.38, and the last one is 15-A10,
which has to do with payments directly to New
York State of $5,337.57. The checks are in this
file, Your Honor.
Petitioner claims an offset to income or a deduction
for payments made in 1989 in the amount of $31,856.70
allegedly on behalf of Ms. Margaret Lynch. His testimony
regarding those payments is as follows:
The next item is number 22-4. Again, these
are all within file 16-J, having to do with the
taxpayer Margaret Lynch, and I paid $75-–$75.01
to the State of Rhode Island on her behalf, for
a tax problem.
In items 23, I paid the IRS, Internal
Revenue Service, directly, $10,831.50 on her
behalf. Item 24, I paid the Internal Revenue
Service $3,930.09 on her behalf. Items 4-23 and
24 are direct checks to either Rhode Island or
the Internal Revenue Service.
In addition, items 30(a) and 30(b) are
direct wires or returns of funds to Margaret
Lynch, as agreed upon, in the amounts of $5,010,
in the instance of 30(a), and in the instance of
30(b), $12,010. Margaret Lynch, in 1989, paid
me fees-–and these were all, as I say, agreed
upon and accepted. Margaret Lynch paid me fees
of $5,159 and also in that period, her sister,
Jeanne Lynch, who is a client and had an
influence over her or their opinion of me
counted, they spoke quite frequently, paid me
fees of $400 in 1989 and in 1990, paid me fees
of $16,961.
Again, I believe these offsets-–there's two
components of the offsets here. One is money
given directly back to the client, which I
consider to be return of fees, and the other is
expenses that I paid directly for the client,
that would be items 24, 23 and 24, and the two
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