Michael White - Page 6

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          such overpayments.  Petitioner did not consult with any tax                 
          professionals to review the returns prepared by Mr. Beltran.2               
               The following itemized deductions (as well as others not in            
          question) were claimed on the 1998 and 1999 tax returns prepared            
          by Mr. Beltran:                                                             

                 1998        1999                                                     
          Charitable contributions              $3,704      $4,543                    
          Unreimbursed employee expenses                                              
          (before the sec. 67(a)                                                      
          limitation)                           9,878       5,517                     

               Petitioner acknowledged that his actual charitable                     
          contributions were considerably less than the amounts claimed on            
          his returns, and, although he maintained logs for his employee-             
          related expenses, Mr. Beltran advised him, as noted above, that             
          such records were not necessary.  Petitioner did not, at trial,             
          make any claim for a deduction for employee business expenses or            
          charitable contributions.                                                   
               When petitioner began receiving correspondence from the                
          Internal Revenue Service questioning his 1998 and 1999 returns,             
          he referred everything to Mr. Beltran, who promised to "take                
          care" of the problem.  However, petitioner never executed a power           

               2    This case is one of numerous cases heard by the Court             
          involving tax returns prepared by Mr. Beltran, which essentially            
          involve the same deductions.  At some point in the audit process,           
          Mr. Beltran ceased all communications with his former clients.              

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