Keith D. Hilen - Page 5

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          2000, to sell the shares of InsWeb common stock petitioner had              
          pledged as collateral.                                                      
               On February 7, 2001, petitioner filed a Form 1040X, Amended            
          U.S. Individual Income Tax Return, for 1999 claiming a refund of            
          $108,488.  In the amended return petitioner reduced the amount of           
          wage income from InsWeb by the spread between the fair market               
          value and the exercise price he paid for shares of stock he                 
          received when he exercised his nonstatutory stock options on                
          December 30, 1999.                                                          
               On September 19, 2001, petitioner filed for chapter 7                  
          bankruptcy in the Bankruptcy Court for the Northern District of             
          California. In his bankruptcy schedules, petitioner listed                  
          Comerica as a creditor.  Petitioner also stated in his schedules            
          that Comerica had filed suit against him to collect on the                  
          promissory note.                                                            
               Petitioner filed a second Form 1040X for 1999 on August 4,             
          2003, claiming a refund of $404,537.  In the second amended                 
          return petitioner reduced the amount of wage income from InsWeb             
          by the spread between the fair market value and the exercise                
          price he paid for shares of stock he received when he exercised             
          his nonstatutory stock options on September 7 and December 30,              
          1999.                                                                       
               On October 1, 2003, respondent sent petitioner a notice of             
          deficiency in which respondent denied petitioner’s claim for                






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