Veterinary Surgical Consultants, P.C. - Page 3




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          residence, during the years in issue and when the petition was              
          filed in this case.                                                         
               Since its organization, petitioner has provided consulting             
          and surgical services to veterinarians.  This activity was and is           
          petitioner’s only business and only source of income.  Sadanaga             
          has been the sole shareholder of petitioner from the time of its            
          incorporation and throughout 1997 and 1998.                                 
               Sadanaga has at all times served as petitioner’s president             
          and only officer.  Minutes from petitioner’s annual meetings of             
          directors and shareholders reflect that, for each of the years in           
          issue, Sadanaga was elected president, vice president, secretary,           
          and treasurer.  Sadanaga was also petitioner’s sole director.               
          During 1997 and 1998, Sadanaga performed the following services             
          for petitioner:  (1) Solicited business on behalf of petitioner;            
          (2) ordered and purchased supplies on behalf of petitioner;                 
          (3) entered into verbal and/or written agreements on behalf of              
          petitioner; (4) oversaw the finances of petitioner; (5) collected           
          moneys owed petitioner; (6) managed petitioner; (7) obtained                
          clients for petitioner; (8) maintained customer satisfaction;               
          (9) performed all bookkeeping services for petitioner; and                  
          (10) performed all surgical and consulting services to clients on           
          behalf of petitioner.  No other person provided any services to             
          petitioner.                                                                 








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