Carlos H. and Maria C. Gonzalez - Page 4

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          Houston, Texas.  Petitioner has a bachelor of science degree in             
          petroleum engineering and has been an employee of Conoco for over           
          27 years.  Maria C. Gonzalez, petitioner’s spouse, was also                 
          employed during the years at issue, earning wage and salary                 
          income of $5,560 and $18,166, respectively, for the 2 years at              
          issue.                                                                      
               Petitioners are natives of Colombia, South America.  Both              
          are U.S. citizens.  Petitioners have maintained contacts with               
          their families and friends in Colombia.                                     
               For the years 2000 and 2001, petitioners included with their           
          Federal income tax returns Schedules C, Profit or Loss From                 
          Business, related to an activity called Special Supply Co., with            
          the business purpose described as the “Export of Industrial                 
          Supplies”.  The income and expenses of the activity for the year            
          2000 were reported as follows:                                              

               Income                                           -0-                   
               Expenses:                                                              
               Advertising             $   899                                        
               Car & truck expenses     12,245                                        
               Legal & professional        649                                        
               Office expenses             373                                        
               Travel                    4,348                                        
               Other expenses           122,978                                       
               Total expenses        $41,492                                          
               Loss                                          ($41,492)                











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