Robert and Karen O'Connor - Page 3




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          and designed and managed rubbish removal and recycling programs.            
          Omega was also involved in farming activity on approximately                
          1,400 acres of land leased from the Christian Boys Ranch, Inc.              
          (CBR).                                                                      
               From 1990 through 1995, petitioners reported passthrough               
          income from Omega on Schedules E, Supplemental Income and Loss,             
          attached to their individual income tax returns as follows:                 
                           Year         Net Income                                    
                           1990         $52,303                                       
                           1991         57,867                                        
                           1992         51,437                                        
                           1993         217,787                                       
                           1994         483,949                                       
                           1995         660,375                                       
               For the same period Robert O’Connor (petitioner) reported              
          wages as follows:                                                           
                           Year         Amount                                        
                           1990         $40,900                                       
                           1991         52,869                                        
                           1992         47,394                                        
                           1993         50,390                                        
                           1994         53,618                                        
                           1995         46,894                                        
               Petitioners organized CBR under the nonprofit laws of the              
          State of California on June 24, 1982.  CBR is a section 501(c)(3)           
          corporation for tax reporting purposes.  Petitioner has served on           
          CBR’s board of directors and as its president since its                     
          incorporation in 1982.  Karen O’Connor has also served on CBR’s             
          board of directors and as CBR’s vice president and secretary-               






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