Steven R. Olmos - Page 4




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              On October 31, 2003, respondent issued petitioner a notice               
          of deficiency for 2001.  Based on information received from                  
          third-party payors, respondent determined petitioner received                
          interest income of $72 from Wells Fargo and self-employment                  
          income of $132,242 from medical and healthcare payments.2  In                
          addition to the medical and healthcare payments reflected above,             
          respondent determined petitioner also received medical and                   
          healthcare payments from the following sources:                              

                          Payor                      Payment(s)                        
              Aetna, Inc.                   $5,789                                     
              Aetna Life Ins. Co.           11,196                                     
              Best Life Assurance           1,000                                      
              Calfarm Ins. Co.              4,218                                      
              Federal Ins. Co.              1,300                                      
              Intercare Ins. Services       3,763                                      
              Kyocera International, Inc.             4,558                            
              Peoria Unified School         1,975                                      
              District                                                                 
              Twin City Fire Ins. Co.       5,404                                      
              Total                         39,203                                     
          After allowing petitioner a standard deduction, a personal                   
          exemption, and an adjustment for self-employment tax, respondent             
          determined petitioner’s 2001 taxable income was $118,108.                    

              2  These medical and healthcare payments included $1,611                 
          from Metropolitan Life Ins. Co.  On brief, respondent conceded               
          petitioner did not receive medical and healthcare payments from              
          Metropolitan Life Ins. Co.                                                   






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