V.R. DeAngelis M.D.P.C. & R.T. Domingo M.D.P.C., V. R. DeAngelis M.D.P.C., Tax Matters Partner, et al. - Page 7




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          find the amount of compensation (if any) that Dr. Durante’s PC              
          reportedly paid Dr. Durante in 1997.                                        
               E.  Dr. Capizzi                                                        
               During 1993 and 1994, Dr. Capizzi’s PC reportedly paid Dr.             
          Capizzi compensation of $609,000 and $719,001, respectively.  The           
          Capizzis’ corresponding Federal income tax returns included those           
          amounts in gross income.  During 1996 through 2003, Dr. Capizzi’s           
          PC reportedly paid Dr. Capizzi compensation of $336,240,                    
          $240,070, $272,043, $294,601, $293,331, $190,271, $194,130 and              
          $148,423, respectively.  The Capizzis’ corresponding Federal                
          income tax returns included those amounts in gross income.  The             
          record does not allow the Court to find the amount of                       
          compensation (if any) that Dr. Capizzi’s PC reportedly paid Dr.             
          Capizzi in 1995.                                                            
          III.  VRD/RTD                                                               
               A.  General Information                                                
               VRD/RTD was formed as a partnership on July 1, 1982, under             
          the laws of New York.  VRD/RTD provided medical and surgical                
          services to its patients through the doctors and operated under             
          the name “South Shore Surgical Specialists”.  VRD/RTD reported              
          its income and expenses for Federal income tax purposes using the           
          cash receipts and disbursements method.  VRD/RTD filed 1993 and             
          1994 Forms 1065, U.S. Partnership Return of Income, for its                 
          taxable years ended December 31, 1993 and 1994, respectively.               







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