                            T.C. Memo. 2000-337



                          UNITED STATES TAX COURT



                   ROBERT M. TEMPLE, Petitioner v.
            COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No.    23071-96.                          Filed November 1, 2000.


     Frank R. Bodor, for petitioner.

     Carol A. Szczepanik, for respondent.



              MEMORANDUM FINDINGS OF FACT AND OPINION


     RUWE, Judge:    Respondent determined deficiencies and

additions to tax in petitioner’s Federal income tax as follows:
                                        Additions to tax
                                Sec.            Sec.         Sec.
     Year    Deficiency       6651(f)        6653(b)(1)    6654(a)
     1988     $26,874           N/A           $20,156      $1,718
     1989      29,683         $22,262            N/A        2,006
     1990      25,383          19,037            N/A        1,671
     1991       7,078           5,309            N/A          410
     1992       4,572           3,429            N/A          200
                                - 2 -

         After concessions,1 the issues for decision are:   (1)

Whether petitioner had unreported income from veterinary

services, the sale of animals, and oil and gas royalties in the

years in issue; (2) whether petitioner is liable for additions to

tax for fraud under sections 6653(b)(1)2 and 6651(f); (3) whether

petitioner is liable for failure to pay estimated tax under

section 6654(a); and (4) whether petitioner is liable for the

imposition of a penalty under section 6673 for taking a frivolous

and groundless position in these proceedings.

                          FINDINGS OF FACT

     Some of the facts have been stipulated and are so found.     At

the time the petition was filed, petitioner resided in

Bristolville, Ohio.




     1
      Respondent concedes the following amounts of income set
forth in the computation of petitioner’s gross receipts from
veterinary services and the sale of animals in the statutory
notice of deficiency: $34,450 in 1988 (see appendix A); $1,815
in 1989 (see appendix B); $1,800 in 1990 (see appendix C);
$10,500 in 1991 (see appendix D); and $391 in 1992 (see appendix
E).
     2
      Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
                               - 3 -

     During the years in issue, petitioner and his wife Catherine

Temple (Mrs. Temple) lived at 5955 Stroups Hickox Road,

Bristolville, Ohio (5955 property).     The 5955 property was a

country home with more than 300 acres.

     During the years in issue, petitioner was a veterinarian,

and he operated a veterinary clinic out of his residence.

Petitioner performed services as a veterinarian for several

clients including Sea World,3 Anheuser Busch, the Ohio Department

of Wildlife, Canton Veterinary Hospital, Educational Zoological

Programs, Inc., Constance A. Halle, Robert M. Sabo, and Wendy

Arbogast.   Petitioner also provided expert testimony for ITT

Hartford.

     Petitioner also had property located at 5501 Stroups Hickox

Road (5501 property).   Petitioner used the 5955 and 5501

properties for livestock breeding.     Petitioner bred and sold

llamas and birds during the years in issue.     Petitioner sold

llamas or birds to the following customers:     John C. or Maria L.

Gifford, Kerney L. and Ann R. Martini, Llamas of Michigan, Swan

Lake Llamas, Avian Farms, Ronald G. and Carole L. DeRhodes, Sunny

Hill Farms, William L. and Maureen F. Crawford, Fish and Feathers

Intl., Ronald C. and Lisa Blider, Educational Zoological




     3
      Anheuser Busch purchased Sea World in 1989.
                               - 4 -

Programs, Inc.,4 Robert M. Sabo, Dennis Grodings, Jerome T. and

Barbara A. Grone, Timothy L. Charles, William J. and Patricia M.

Boever, Mary Z. Reed, and Wendy Arbogast.

     During the years in issue, petitioner’s gross receipts from

services provided as a veterinarian and from the sale of animals

were as follows:

                     Year      Gross Receipts
                                  1
                     1988           $47,750
                                    2
                     1989             88,404
                                    3
                     1990             74,360
                                    4
                     1991             16,059
                                    5
                     1992             17,880
                       Total        244,453
     1
         See   appendix   F.
     2
         See   appendix   G.
     3
         See   appendix   H.
     4
         See   appendix   I.
     5
         See   appendix   J.

     Approximately half of petitioner’s receipts during 1988 were

in the form of checks payable to Dr. Temple, while the remaining

checks were payable to Plume Enterprises.5   Payments in 1989,

1990, 1991, and 1992 were almost exclusively made to Plume

Enterprises, except for one check in the amount of $15,5006 in




     4
         Purchased a snake.
     5
         See appendix F.
     6
      All amounts throughout this opinion are rounded to the
nearest dollar.
                                 - 5 -

1990,7 one check in the amount of $600 in 1991,8 and three checks

totaling $1,410 in 1992.9

     With the exception of one check issued in 1989 and seven

checks issued in 1992, all checks payable to Plume Enterprises

were deposited in an account with Bank One,10 account No.

400359855 (Bank One 855 account), held in the name of Plume

Enterprises.11     Oxford Charter Corp. was listed as trustee on

Plume Enterprises’ Bank One 855 account.      L. R. Mayer was the

executive director of Oxford Charter Corp. during 1987.

     Mrs. Temple had signatory authority over the Bank One 855

account, and the monthly bank statements were sent to

petitioner’s residence.     During the years in issue, Mrs. Temple

signed the following checks drawn on Plume Enterprises’ Bank One

855 account:



     7
      See appendix H. This check was payable to Galingale Llamas
and deposited into a Bank One account, account No. 400359863
(Bank One 863 account). Mrs. Temple had signatory authority over
this account.
     8
      See appendix I. This check was payable to Wendy Arbogast
but deposited in Plume Enterprises’ Bank One account, account No.
400359855 (Bank One 855 account). Mrs. Temple had signatory
authority over this account.
     9
      See appendix J. These checks were payable to Galingale
Group and deposited into the Bank One 863 account. Mrs. Temple
had signatory authority over this account.
     10
          See appendixes F, G, H, I, and J.
     11
      For a period that included June 10, 1988, through Sept.
25, 1992.
                                   - 6 -

     Year                   Payee                    Amount
     1989              Lets Go Travel                  $240
     1989              Lets Go Travel                   480
     1989              Cash                           1,000
     1989              R&J Auto Services                404
     1989              DS.BA                            625
     1990              R&J Auto Services                814
     1990              R&J Auto Services                169
     1990              Action Travel                    791
     1990              Radisson Resort                  497
     1990              Action Travel                    158
     1990              Admiral Bendoro                  144
     1990              Trundle Management1            2,000
     1990              Trundle Management2            1,500
     1990              Trundle Management               500
     1991              Action Travel                    278
     1991              Hotel Westcourt                  162
     1991              Action Travel                    318
     1991              Action Travel                    296
     1991              Greenbelt Holiday Inn             67
     1992              Control Management Inc.          400
     1992              Cash                             391
     1992              McMeyers & Ford, Inc.            300
       Total                                         11,534
     1-2
        These checks, totaling $3,500, were deposited in an account with
Second National Bank, account No. 1163506106. Mrs. Temple had signatory
authority over this account, and monthly bank statements were sent to
petitioner’s residence.

     The one check issued in 1989 that was not deposited into the

Bank One 855 account was deposited in another Bank One account,

account No. 400359863 (Bank One 863 account).           The Bank One 863

account was held in the name of Galingale Group, Oxford Charter

Corp., Trustee.12    L. R. Mayer was the executive director of

Oxford Charter Corp. during 1987.

     Mrs. Temple had signatory authority over the Bank One 863

account, and during the years in issue, she signed the following

     12
      For a period that included June 13, 1988, through Sept.
30, 1992.
                                        - 7 -

checks drawn on that account:

      Year                     Payee                        Amount
      1988                Lets Go Travel                       $694
      1988                Bavarian Manor                         50
      1988                Custom Parrot Network              10,000
      1988                Bavarian Manor                        133
      1988                Sheraton Centre                       531
      1988                Custom Parrot Network               3,500
      1988                Trundle Management1                 2,000
      1989                The Sheraton Greensboro               512
      1989                DS.BA                               1,250
      1989                Lets Go Travel                        724
      1989                Regal Travel                          138
      1990                Trundle Management2                 2,000
      1990                Home Centers                          281
      1991                Trundle Management3                 2,000
      1991                Trundle Management4                 2,000
      1991                Cash                                  300
      1991                Cash                                  500
      1992                Cash                                  107
        Total                                                26,720
       1-4
           These checks, totaling $8,000, were deposited in an account with Second
National Bank, account No. 1163506106. Mrs. Temple had signatory authority over
this account, and monthly bank statements were sent to petitioner’s residence.

      The seven checks issued in 1992 that were not deposited in

the Bank One 855 account were deposited in an account with

Cortland Savings and Banking Co.13 held in the name of Plume

Enterprises.      These checks totaled $8,800, and they were

deposited from August to December 1992 in the Cortland Savings

account.      Neither petitioner nor his wife was listed as having

signatory authority over the Cortland Savings account, but

monthly bank statements14 were sent to their residence, which was

also the address listed on the signature card as the account

      13
           Account No. 23-043-10.       See appendix J.
      14
           For the period beginning Aug. 18 and ending Oct. 30, 1992.
                                       - 8 -

owner’s address.

      During 1992, the following checks were drawn on the Plume

Enterprises’ Cortland Savings account:

      Year                    Payee                 Amount
      1992                Comfort Suites              $164
      1992                L. R. Mayer1                 125
      1992                Action Travel                220
      1992                Galt House                   386
      1992                Piccolo Co.                1,000
      1992                Control Management, Inc.2    400
      1992                McMyers & Ford3              300
      1992                Piccolo Co.                5,458
        Total                                        8,053
       1
         L. R. Mayer was the executive director of Oxford Charter Corp. during 1987.
Oxford Charter Corp. was listed as trustee on Plume Enterprises’ Bank One 855
account and for a Plume Enterprises’ bank account with Society Bank of Eastern Ohio.
       2
         Control Management had a contract with Plume Enterprises with Pritchel &
Pritchel as trustee. The agreement stated, in part, that Control Management would
establish and maintain bank accounts for Plume Enterprises.
       3
         The notation on this check indicates that it is payment for trustee fees.

      All the above-listed checks were written between September

and December 1992.        The two largest checks drawn on the Cortland

Savings account, one for $1,000 and the other for $5,458, were

payable to Piccolo Co.         The check for $1,000 was written on

October 29, 1992, and the check for $5,458 was written on

December 31, 1992.        Piccolo Co. had an account with Second

National Bank of Warren,15 account No. 1163353006 (Second

National 006 account).16

      15
           For a period that included May 2, 1988, through Dec. 29,
1992.
      16
      Several substantial deposits were also made into Piccolo’s
account by Plume Enterprises, drawn on account No. 400359855 and
by Trundle Management, drawn on account No. 1163506106. All
these deposits were made by checks signed by Mrs. Temple in the
                                                   (continued...)
                                      - 9 -

      G. Bodor had signatory authority over Piccolo’s account with

Second National Bank.17        During the years in issue, G. Bodor

signed the following checks, all of which were drawn on Piccolo

Co.’s Second National 006 account:

            Year          Amount              Payee
            1988         $10,000              Purfle   Co.
            1988          14,000              Purfle   Co.
            1988          10,000              Purfle   Co.
            1988            7,630             Purfle   Co.
            1989          22,571              Purfle   Co.
            1989            5,000             Purfle   Co.
            1989            9,597             Purfle   Co.
            1990            5,000             Purfle   Co.
            1991            4,400             Purfle   Co.
            1991            4,479             Purfle   Co.
                           1
            1992             2,000            Purfle   Co.
              Total       94,677
      1
       This check was issued in 1992 and signed by B. L. Holtzhauer with what
appears to be a signature stamp.

      The first seven checks listed above, totaling $78,798, were

deposited into a Dollar Savings and Trust Co. account, account

No. 218-000-827 (Dollar Savings 827 account).                The Dollar Savings

827 account was held in the name of Purfle Co. with Eton Trust




      16
      (...continued)
years 1988-1992.
      17
      We note that petitioner’s attorney Frank R. Bodor was the
taxpayer, along with his wife Gina Bodor, in Bodor v.
Commissioner, T.C. Memo. 1993-456, affd. without published
opinion 52 F.3d 324 (6th Cir. 1995). In that case, this Court
found that Robert Temple signed checks for an entity created and
operated by Mr. and Mrs. Bodor pursuant to a plan to create
tiered structures of domestic and foreign trust shell entities to
disguise the fact that Mr. and Mrs. Bodor or their minor children
still owned property.
                                 - 10 -

Co., Ltd., as trustee.18     Both petitioner and Mrs. Temple had

signatory authority over the Dollar Savings 827 account.

     Mrs. Temple signed checks payable to cash and drawn on the

Dollar Savings 827 account during the years in issue as follows:

                  Year           Amount
                  1989           $4,000
                  1989            4,500
                  1989            4,500
                  1989            1,500
                  1989            2,000
                  1989            2,892
                  1989            4,833
                  1989            4,000
                  1989            4,500
                  1989            4,000
                    Total        36,725

     In addition to the above-listed checks payable to cash, Mrs.

Temple withdrew $5,000 from the Dollar Savings 827 account in the

form of a cashier’s check payable to petitioner.     Purfle Co. was

remitter on another check drawn on a Dollar Savings bank account

and payable to petitioner in the amount of $5,000.

     The last four checks, listed on the previous page, and drawn

on the Second National 006 account, totaled $15,879.     All these

checks were deposited into a second bank account with Dollar

Savings and Trust Co., account No. 213-593-320 (Dollar Savings

320 account).     The Dollar Savings 320 account was held in the




     18
          For a period that included Nov. 22, 1988, through Mar. 15,
1990.
                                 - 11 -

name of Purfle Co. with Eaton Trust Co., Ltd., as trustee.19

Both petitioner and Mrs. Temple had signatory authority over this

account.

     Mrs. Temple signed checks payable to cash and drawn on the

Dollar Savings 320 account during the years in issue as follows:

                  Year           Amount
                  1990           $1,500
                  1990              500
                  1990              500
                  1990            2,500
                  1991            3,000
                  1991            2,000
                  1991            2,000
                  1991            1,500
                  1991              200
                  1992            2,000
                  1992            2,500
                  1992            2,000
                    Total        20,200

     On May 26, 1992, B. L. Holtzhauer replaced petitioner and

Mrs. Temple as the person authorized to sign checks on the Dollar

Savings 320 account.     The following checks payable to cash were

signed by B. L. Holtzhauer:

                  Year           Amount
                  1992           $1,000
                  1992            1,000
                  1992            2,045
                    Total         4,045

     On December 7, 1992, the Dollar Savings 320 account was

closed, and the proceeds were deposited into Barclays Bank,

Nassau, Bahamas.


     19
          For a period that included Mar. 15, 1990, through Dec. 7,
1992.
                               - 12 -

     Prior to February 1985, petitioner was title owner of the

5501 and 5955 properties.   On February 28, 1985, petitioner

granted his interest in the 5501 and 5955 properties to Black

Creek Management Co. with Nassau Life Insurance Co.,20 Ltd., as

trustee21 by warranty deeds.

     Oil and gas drilling sites were located on both the 5501 and

5955 properties.   On February 1, 1985, petitioner executed an

Exchange of Royalty Interest with Old Labrador Investment Co.

with Nassau Life Insurance Co., Ltd., as trustee.   The Exchange

of Royalty Interest indicates that petitioner granted Old

Labrador Investment Co. with Nassau Life Insurance Co., Ltd., as

trustee his interest in the oil and gas leases for both

properties for a stated consideration of $10.   The Exchange of

Royalty Interest was recorded in the Trumbull County Recorder’s

Office on February 28, 1985.




     20
      Nassau Life Insurance Co. was an entity which assisted
taxpayers to avoid the payment and collection of their Federal
income taxes. See Boyce v. Commissioner, T.C. Memo. 1990-658,
affd. without published opinion 955 F.2d 47 (9th Cir. 1992); see
also Para Techs. Trust v. Commissioner, T.C. Memo. 1992-575; and
Johnson v. Commissioner, T.C. Memo. 1989-591. Due to illegal
activities and a “tax situation”, Nassau Life Insurance Co.
ceased operations. See Bodor v. Commissioner, T.C. Memo. 1993-
456.
     21
      The tax mailing address used by Nassau Life Insurance Co.
on the warranty deeds was P.M.B. 11 Grand Turk, Turks & Caicos
Islands, British West Indies.
                                - 13 -

     On January 25, 1988, Black Creek Management Co. with Nassau

Life Insurance Co., Ltd., as trustee granted by warranty deed for

a stated consideration of $1 the 5501 and 5955 properties to

Trundle Management with Eton Trust Co., Ltd., as trustee22 by

warranty deed.23    On the same day, Old Labrador Investment Co.

with Nassau Life Insurance Co., Ltd., as trustee, granted for $1

in consideration its royalty interest in the oil and gas leases

in both properties to Trundle Management with Eton Trust Co.,

Ltd., as trustee.

     Petitioner and his wife continued to reside at the 5955

property.   Petitioner continued to use the 5501 and 5955

properties for livestock operations and to operate a veterinary

clinic.   Petitioner continued to exercise dominion and control

over the 5501 and 5955 properties.

     Pennzoil Oil and Scavenger Oil paid royalties for use of the

oil and gas wells located on both properties during the years in



     22
      The tax mailing address used by Eton Trust Co., Ltd., on
the warranty deeds was Grant Petroleum Building, Providenciales,
British West Indies.
     23
      The timing of the transfer is similar to the facts in
Bodor v. Commissioner, supra. The taxpayer in that case was
Frank R. Bodor. He is the attorney representing petitioner in
the present case. In Bodor, we found that the taxpayer
transferred his interest in eight properties by quitclaim to
various foreign entities for which Nassau Life Insurance Co.
served as trustee, that due to illegal activities in late 1986 or
early 1987, Nassau Life ceased operations, and that Mr. Bodor
knew that the problems stemmed from illegal activities and a “tax
situation”.
                                    - 14 -

issue.     Royalty payments from Pennzoil and Scavenger were as

follows:

                    Year              Royalty Income
                                         1
                    1990                   $2,789
                                           2
                    1991                     2,199
                                           3
                    1992                     2,203
                      Total                  7,191
     1
          See appendix H.
     2
          See appendix I.
     3
          See appendix J.

     With the exception of one deposit, all checks were deposited

into an account with the Second National Bank of Warren, account

No. 1163506106 (Second National 106 account).          The account was

held in the name of Trundle Management, Eton Trust Co., Ltd.,

Trustee.24     Originally, Mrs. Temple and P. Evans had signature

authority over the account.        Petitioner’s address was listed on

the signature card.         On July 7, 1992, B. L. Holtzhauer’s name was

added to the signature card.        The address listed as B. L.

Holtzhauer’s address on the signature card was petitioner’s

residence.      Bank statements were sent to petitioner’s residence.

     During the years in issue, Mrs. Temple signed checks drawn

on the Second National 106 account as follows:




     24
          For a period that included June 9, 1988, through Jan. 8,
1993.
                                      - 15 -

                   Year         Amount       Payee
                   1989             $500     Cash
                   1989              500     Cash
                   1989              312     DS.BA
                   1990           1,000      Cash
                   1990           3,450      Sweda Heating & Cooling
                   1990           1,316      R. C. Drywall
                                 1
                     Total         7,078
      1
       B. L. Holtzhauer signed one check in the amount of $60, payable to Universal
Disposal in 1992.

      Petitioner was in the process of remodeling and expanding

his personal residence in 1989.

      Petitioner made a $5,000 deposit into the Second National

106 account in 1988.        The source of the $5,000 deposit was a bank

check payable to petitioner drawn from one of the Dollar Savings

and Trust accounts.

      Petitioner filed Form 1040, U.S. Individual Income Tax

Return, for the years 1975 through 1979.              Petitioner did not file

a Federal income tax return for 1980, and he has not filed a

Federal income tax return for any year since 1980.

                                     OPINION

I.   Unreported Income

      Petitioner failed to file Federal income tax returns for the

years 1988, 1989, 1990, 1991, and 1992.              Respondent determined

that petitioner was engaged in the business activity of

performing veterinary services and selling livestock during those

years.    Respondent computed petitioner’s business gross receipts

based on deposits made to bank accounts which petitioner

controlled during those years, taking into account transfers and
                               - 16 -

nontaxable items.    Respondent also determined that petitioner

received royalty income during the years 1990, 1991, and 1992.

      Petitioner does not dispute the existence of the

transactions that produced the income that respondent attributes

to him.   Rather, petitioner argues that the income was received

by, and deposited into bank accounts of, valid irrevocable

trusts.   Petitioner asserts that respondent has improperly

imputed gross income received by a trust to petitioner and has

improperly failed to recognize the trust as a separate entity.

We note, as a preliminary matter, that petitioner did not provide

copies of any trust agreements, nor did he or his wife testify at

trial.

      Section 61(a) provides, in part, that “gross income means

all income from whatever source derived, including (but not

limited to)” compensation for services, gains derived from

dealing in property and royalties.      It is fundamental to our

system of taxation that income must be taxed to the one who earns

it.   See Commissioner v. Culbertson, 337 U.S. 733, 739-740

(1949); Lucas v. Earl, 281 U.S. 111, 114-115 (1930).     Income can

be attributed to an individual when the recipient has total

control or dominion over the funds and uses the funds for

personal purposes.    See Davis v. United States, 226 F.2d 331, 334

(6th Cir. 1955); Woods v. Commissioner, T.C. Memo. 1989-611,

affd. without published opinion 929 F.2d 702 (6th Cir. 1991).
                                  - 17 -

     A.     Veterinarian Services and the Sale of Livestock

     Petitioner provided veterinarian services, and he bred and

sold animals.     As a result, petitioner received payments by

checks totaling $47,750 in 1988,25 $88,404 in 1989,26 $74,360 in

1990,27 $16,059 in 1991,28 and $17,880 in 1992.29    In 1988, checks

totaling $11,000 were payable to Dr. Temple, while the remaining

checks totaling $36,750 were payable to Plume Enterprises and

deposited into the Bank One 855 account.       This account was

fashioned as a trustee account, but all funds deposited in the

account were based on payments petitioner received for

veterinarian services that he provided and from the sale of

animals that he sold.       Mrs. Temple had signatory authority over

the account.

     In 1989, petitioner received checks totaling $88,404 for the

services he provided as a veterinarian and from the sale of

animals.     Petitioner deposited checks totaling $87,804 in the

Bank One 855 account, and the remaining check for $600 in the

Bank One 863 account.       Petitioner’s spouse, Mrs. Temple, had

signatory authority over both accounts.


     25
          See appendix F.
     26
          See appendix G.
     27
          See appendix H.
     28
          See appendix I.
     29
          See appendix J.
                                - 18 -

        In 1990, petitioner received checks totaling $74,360 for the

services he provided as a veterinarian and from the sale of

animals.     Petitioner deposited checks totaling $74,360 into the

Bank One 855 account, which Mrs. Temple had signatory authority

over.

        In 1991, petitioner received checks totaling $16,059 for the

services he provided as a veterinarian and from the sale of

animals.30    Petitioner deposited checks totaling $16,059 into the

Bank One 855 account, which Mrs. Temple had signatory authority

over.

     In 1992, petitioner received checks totaling $17,880 for the

services he provided as a veterinarian and from the sale of

animals.     Petitioner deposited checks totaling $7,670 in the Bank

One 855 account and checks totaling $1,410 in the Bank One 863

account.     Mrs. Temple had signatory authority over both accounts.

     Amounts deposited into the Bank One 855 account in the name

of Plume Enterprises and the Bank One 863 account in the name of

Galingale Group constituted income of petitioner.     Petitioner

earned the income, he and his wife exercised total dominion and

control over those funds, and they expended the funds for their

personal expenses.    From these two accounts alone, Mrs. Temple




        30
      One check for $600 was actually made payable to one of
petitioner’s customers, Wendy Arbogast, but deposited into the
Bank One 855 account. See appendix I.
                             - 19 -

signed checks totaling $38,25431 for personal items, including

cash, travel agencies, hotels, auto services and deposits to

other accounts over which she had signatory authority.

     The remaining payments received by petitioner in 1992,

checks totaling $8,800, from services he provided as a

veterinarian and animals that he sold were deposited into the

Cortland Savings account between August and December 1992.

Neither petitioner nor his wife was listed as having signatory

authority over the Cortland Savings account; however, monthly

bank statements were sent to petitioner’s residence, and the

signature card listed petitioner’s address as the account owner’s

address.

     During the period from September to December 1992, checks

totaling $8,053 were drawn on the Cortland Savings account.     A

majority of those funds, checks totaling $6,458, were deposited

in an account with the Second National Bank of Warren.32   G.

Bodor had signatory authority over the Second National 006

account, and during the years in issue she wrote checks totaling

$94,677 and deposited them into one of two Dollar Savings and


     31
      Consisting of checks totaling $11,534 from the Bank One
855 account and checks totaling $26,720 from the Bank One 863
account.
     32
      Additional checks totaling $825 were used to pay L. R.
Mayer ($125), Control Management ($400), and McMeyers & Ford
($300). We believe these expenses were incurred, in part, to
maintain the appearance of a valid trust arrangement. Most of
the remaining funds were spent on travel expenses.
                                - 20 -

Trust accounts.   Petitioner and his wife had signatory authority

over both Dollar Savings and Trust accounts.

     We find that the $8,800 was earned by petitioner and then

funneled through the various accounts as part of petitioner’s

overall plan to conceal income.    Once we view through the layers

of nominee accounts through which the funds were channeled,

petitioner remained in control of the funds.

     B.   Royalty Income

     A fundamental principle of income tax law is that economic

substance prevails over form.    See Gregory v. Helvering, 293 U.S.

465 (1935).   “When the form of the transaction has not, in fact,

altered any cognizable economic relationships, we will look

through that form and apply the tax law according to the

substance of the transaction.”    Zmuda v. Commissioner, 79 T.C.

714, 720 (1982), affd. 731 F.2d 1417 (9th Cir. 1984).   This rule

applies regardless of whether the entity has a separate existence

recognized under State law and whether, in form, it is a trust, a

common-law business trust, or some other form of jural entity.

See id.

     We find the various transactions which purported to result

in a transfer of petitioner’s interest in the 5501 and 5955

properties and his royalty interest in those properties to be

without economic substance.   Petitioner always remained in
                                - 21 -

possession of the properties, and he continued to control the

properties as he had done before the transfers.

     Petitioner and his wife continued to live in their residence

located on the 5955 property.    Petitioner continued to use the

properties for livestock breeding, sale of livestock, and

operation of a veterinary clinic.    Petitioner, regardless of

legal title, exercised dominion and control over the properties.

     Payments of $7,191 were made for the use of oil and gas

wells located on petitioner’s properties during the years in

issue.   With the exception of one check for $1,800, payments

totaling $5,391 were deposited into the Second National 106

account.   Mrs. Temple had signatory authority over this account,

petitioner’s address was listed on the signature card, and bank

statements were mailed to petitioner’s residence.

     Mrs. Temple signed checks totaling $2,000 payable to cash in

1989 and 1990 and checks totaling $4,766 in 1990 to contractors

from this account.   Petitioner was in the process of remodeling

and expanding his personal residence in 1989.

     The one check for $1,800 that was not deposited in the

Second National 106 account was deposited into the Bank One 855

account.   Mrs. Temple signed checks totaling $11,534 for personal

items including, cash, hotels, several travel agencies, and an

automobile service shop drawn on this account.
                               - 22 -

     Petitioner argues that if the income items in appendixes F

through J are attributed to him, then respondent has failed to

subtract expenses or deductions from petitioner’s gross receipts

for each year in issue.   However, petitioner did not provide any

evidence regarding allowable expenses or deductions, and neither

petitioner nor his wife testified.

     Even in criminal tax evasion cases, where the Government

bears the greater burden of proof beyond a reasonable doubt, it

is well settled “that evidence of unexplained receipts shifts to

the taxpayer the burden of coming forward with evidence as to the

amount of offsetting expenses, if any.”      Siravo v. United States,

377 F.2d 469, 473 (1st Cir. 1967); see also Franklin v.

Commissioner, T.C. Memo. 1993-184.      Where the taxpayer has failed

to file a return, or his return shows no receipts from a

particular activity, then the assumption that he, more readily

than respondent, has access to evidence of deductions or other

offsetting amounts makes the nonexistence of such amounts a fair

presumption, at least as an initial matter and absent a

satisfactory explanation of such nonexistence or the production

of some probative evidence.    See Franklin v. Commissioner, supra.

     We hold that petitioner had unreported taxable income of

$47,750 in 1988, $88,404 in 1989, $77,149 in 1990, $18,258 in

1991, and $20,083 in 1992.    See appendixes F through J.
                                     - 23 -

 II.    Additions to Tax for Fraud

       The next issue is whether any part of the underpayment of

income tax for each year in issue is due to fraud.       Respondent’s

notice of deficiency determined that petitioner is liable for the

addition to tax for fraud imposed under section 6653(b)(1)33 for

the taxable year 1988 and for the addition to tax for fraudulent

failure to file under section 6651(f)34 for the taxable years


       33
            Sec. 6653(b)(1) provides, in part:

               SEC. 6653(b) Fraud.--

            (1) In General.--If any part of any underpayment
       * * * of tax required to be shown on a return is due to
       fraud, there shall be added to the tax an amount equal
       to 75 percent of the portion of the underpayment which
       is attributable to fraud.
       34
            Sec. 6651(f) provides:

            SEC. 6651(f) Increase in Penalty for Fraudulent
       Failure to File.--If any failure to file any return is
       fraudulent, paragraph (1) of subsection (a) shall be
       applied–-

                    (1) by substituting “15 percent” for “5
               percent” each place it appears, and

                    (2) by substituting “75 percent” for “25
               percent”.

       Sec. 6651(a)(1) provides in relevant part:

       SEC. 6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX.

               (a) Addition to the Tax.--In case of failure--

                    (1) to file any return required under
               authority of subchapter A of chapter 61 * * * on
               the date prescribed therefor (determined with
                                                        (continued...)
                                 - 24 -

1989, 1990, 1991, and 1992.     Each section imposes an addition to

tax equal to 75 percent of the portion of an underpayment that is

attributable to fraud.     Because these provisions are analyzed

similarly as to the determination of fraudulent intent, we

consolidate our discussion of respondent’s fraud determinations.

See Clayton v. Commissioner, 102 T.C. 632, 653 (1994).

     Respondent has the burden of proving by clear and convincing

evidence that an underpayment exists for the years in issue and

that some portion of the underpayment is due to fraud.       See sec.

7454(a); Rule 142(b); Niedringhaus v. Commissioner, 99 T.C. 202,

210 (1992).     Consequently, respondent must establish:   (1)

Petitioner has underpaid his taxes for each year; and (2) some

part of the underpayment is due to fraud.     See DiLeo v.

Commissioner, 96 T.C. 858, 873 (1991), affd. 959 F.2d 16 (2d Cir.

1992).     Fraud is the intentional wrongdoing on the part of a

taxpayer to evade a tax believed to be owing.     See Petzoldt v.

Commissioner, 92 T.C. 661, 698 (1989).     Where fraud is determined

for each of several years, respondent’s burden applies separately


     34
          (...continued)
              regard to any extension of time for filing),
              unless it is shown that such failure is due to
              reasonable cause and not due to willful neglect,
              there shall be added to the amount required to be
              shown as tax on such return 5 percent of the
              amount of such tax if the failure is for not more
              than 1 month, with an additional 5 percent for
              each additional month or fraction thereof during
              which such failure continues, not exceeding 25
              percent in the aggregate;
                                 - 25 -

for each of the years.     See Drieborg v. Commissioner, 225 F.2d

216, 219-220 (6th Cir. 1955), affg. in part and revg. in part a

Memorandum Opinion of this Court dated Feb. 24, 1954.

     A.     Underpayment of Taxes

     Based on the evidence presented and our previous analysis,

we find that respondent has clearly and convincingly established

that petitioner understated his taxable income by $47,75035 in

1988, $88,40436 in 1989, $77,14937 in 1990, $18,25838 in 1991, and

$20,08339 in 1992.    Petitioner underpaid his taxes for each year

in issue.

     B.     Fraudulent Intent

     Respondent must prove that a portion of the underpayment is

attributable to the fraudulent intent of petitioner.    Fraud is

the intentional wrongdoing motivated by a specific purpose to

evade a tax known or believed to be owing.    See Stolzfus v.

United States, 398 F.2d 1002, 1004 (3d Cir. 1968).     The existence

of fraud is a question of fact to be resolved upon consideration

of the entire record.     See Gajewski v. Commissioner, 67 T.C. 181,




     35
          See appendix A or F.
     36
          See appendix B or G.
     37
          See appendix C or H.
     38
          See appendix D or I.
     39
          See appendix E or J.
                                - 26 -

199 (1976), affd. without published opinion 578 F.2d 1383 (8th

Cir. 1978).

     Direct proof of a taxpayer’s intent is rarely available;

thus, fraud may be proven by circumstantial evidence, and

reasonable inferences may be drawn from the relevant facts.     See

Spies v. United States, 317 U.S. 492, 499 (1943); Stephenson v.

Commissioner, 79 T.C. 995, 1006 (1982), affd. 748 F.2d 331 (6th

Cir. 1984).     Any conduct, the likely effect of which would be to

mislead or to conceal may establish an affirmative act of

evasion.   See Spies v. United States, supra at 499.

     The courts have relied upon a number of indicia of fraud in

deciding whether an underpayment of tax is due to fraud.     While

no single factor is necessarily sufficient to establish fraud,

the existence of several indicia is persuasive circumstantial

evidence of fraud.    See Petzoldt v. Commissioner, supra.

     Respondent argues that the following factors or “badges” of

fraud are present in this case:    (1) A substantial and consistent

understatement of income; (2) extensive dealings in cash; (3) use

of nominee accounts;40 (4) failure to cooperate with revenue

agents; and (5) petitioner’s level of education.

           1.    Substantial and Consistent Understatement of
                 Income

     Consistent failure to report substantial amounts of income


     40
      Use of bank accounts fashioned as trust accounts to
conceal assets.
                               - 27 -

over a number of years is, standing alone, highly persuasive

evidence of fraudulent intent.    See Kurnick v. Commissioner, 232

F.2d 678 (6th Cir. 1956), affg. T.C. Memo. 1955-31; Reash v.

Commissioner, 218 F.2d 954 (6th Cir. 1954), affg. per curiam a

Memorandum Opinion of this Court dated Dec. 28, 1953.     In this

case, there is a substantial and consistent underpayment of tax

for each of the years in issue.

           2.   Extensive Dealings in Cash

     Dealing in cash to avoid scrutiny of one’s finances is a

badge of fraud.   See Bradford v. Commissioner, 796 F.2d 303, 307-

308 (9th Cir. 1986), affg. T.C. Memo. 1984-601.     Petitioner made

numerous and substantial cash transactions during the 5 years in

issue.

     During the years in issue, Mrs. Temple signed checks payable

to cash totaling $59,223 that were drawn on four different

accounts, all of which were fashioned as trust accounts.     Mrs.

Temple was not a named trustee on any of these accounts.     For the

short period of time that B. L. Holtzauer replaced petitioner and

Mrs. Temple on the Dollar Savings 320 account, checks totaling

$4,045 were issued payable to cash.     The last check issued to

cash in the amount of $2,045 was used toward the purchase of a

bank check for $2,645.   The Dollar Savings 320 account was

closed, and the proceeds deposited into an account in Nassau,

Bahamas.
                                - 28 -

     Wendy Arbogast was one of petitioner’s clients.      Ms.

Arbogast testified that she had purchased a bird from petitioner

for $1,400 but paid $800 of the purchase price in cash.         Ms.

Arbogast testified that petitioner told her when she started

going to him for veterinary services that he preferred cash

payments.

            3.   Use of Nominee Accounts

     Use of nominees to conceal assets that a taxpayer has

unfettered control over is evidence of fraud.      See Friedman v.

Commissioner, T.C. Memo. 1968-145, affd. 421 F.2d 658 (6th Cir.

1970).

     Petitioner received checks from various customers for

providing veterinarian services, the sale of animals, and

royalties and deposited them into various bank accounts fashioned

as trustee accounts.     These deposits were derived from income

earned by and taxable to petitioner.       The accounts were fashioned

as trust accounts in an effort by petitioner to disguise the true

ownership of the accounts.

            4.   Failure To Cooperate With Revenue Agents

     Failure to cooperate with revenue agents during the audit

phase of a case is an additional indication of guilty knowledge

on a taxpayer’s part.    See Professional Servs. v. Commissioner,

79 T.C. 888, 933 (1982).
                                - 29 -

     Revenue Agent Gentile conducted the examination of

petitioner for the years in issue.       Mr. Gentile testified that as

an initial step in his examination of petitioner, he sent

petitioner two appointment letters.      However, petitioner did not

appear at either appointment and did not provide any books or

records during the course of the examination.

            5.   Level of Education

     A taxpayer’s level of education and his prior history of

filing proper Federal income tax returns are relevant.      See

Stephenson v. Commissioner, 79 T.C. 995 (1982).

     Petitioner is a doctor of veterinary medicine.      A person

with his level of education should know that he cannot escape

liability from income taxation and still enjoy control and

dominion over all the income he received by establishing nominee

accounts.    Petitioner filed Federal income tax returns for 1975,

1976, 1977, 1978, and 1979.    His filing of proper returns for

years prior to the years in issue demonstrates that he was aware

of his income tax responsibilities.

     C.     Conclusion

     The facts and circumstances of this case clearly and

convincingly support respondent’s determination of fraud for each

year in issue.
                               - 30 -

III.    Additions to Tax for Failure To Pay Estimated Tax

       For 1988, 1989, 1990, 1991, and 1992, respondent determined

additions to tax for failure to pay estimated tax under section

6654.    If there is an underpayment of estimated tax for any of

the years in issue, section 6654(a) imposes an addition to tax

equal to the interest rate established under section 6621 applied

to the amount of the underpayment for the period of the

underpayment.    This addition to tax is mandatory and, unless one

of the exceptions in section 6654(e) applies, is imposed

regardless of reasonable cause or extenuating circumstances.    See

Dodge v. Commissioner, 96 T.C. 172, 183 (1991), affd. on this

issue 981 F.2d 350 (8th Cir. 1992); Grosshandler v. Commissioner,

75 T.C. 1, 21 (1980).

       The Commissioner’s determinations of additions to tax under

section 6654 are presumed to be correct, and the taxpayer bears

the burden of proving that he is not liable for those additions.

See Rule 142(a).    Petitioner did not offer any evidence that he

paid estimated tax for 1988, 1989, 1990, 1991, and 1992.

Accordingly, we sustain respondent’s determination.

IV.    Penalty Pursuant to Section 6673

       Under section 6673, this Court may award a penalty to the

United States of up to $25,000 when the proceeding has been

instituted or maintained by the taxpayer primarily for delay or

if the taxpayer's position in such proceeding is frivolous or
                               - 31 -

groundless.   See sec. 6673.   Based on the record, we conclude

that such an award is appropriate in this case.    Petitioner’s

argument that he can escape liability for income tax by

purporting to assign earnings from his personal activities to a

series of trusts is frivolous.    Accordingly, a penalty is awarded

to the United States under section 6673 in the amount of $5,000.

     We have considered all arguments in this case.    Those

arguments not discussed herein are without merit or irrelevant.

To reflect the foregoing,



                                      An appropriate order will be

                                 issued granting respondent’s motion

                                 for a penalty, and decision will be

                                 entered under Rule 155.
                                - 32 -

                              APPENDIX A

                        1988 Gross Receipts


As Stated in Notice of Deficiency1         Concessions    Total

     Payor           Amount
Sea World of Ohio     $500                      0          $500
Sea World of Ohio      500                      0           500
Sea World of Ohio    1,000                      0         1,000
Sea World of Ohio    1,500                      0         1,500
Swan Lake Llamas     5,750                      0         5,750
Sea World of Ohio    1,500                      0         1,500
Society Bank         5,750                  ($5,750)        0
Bank One               200                     (200)        0
Sea World of Ohio    1,500                      0         1,500
Sea World of Ohio    1,500                      0         1,500
Sea World of Ohio    1,500                      0         1,500
Sea World of Ohio    5,000                      0         5,000
Jerome T. Grone      2,500                      0         2,500
Sea World of Ohio    1,500                      0         1,500
Sunny Hill Farm      1,500                      0         1,500
John C. Gifford        100                      0           100
Sunny Hill Farm     13,500                      0        13,500
Piccolo Company     10,000                  (10,000)        0
John C. Gifford      1,100                      0         1,100
John C. Gifford      7,300                      0         7,300
Custom Parrot
 Network             3,500                    (3,500)        0
Dollar Bank
 Cashier Check      15,000                  (15,000)        0
  Total             82,200                  (34,450)     47,750

     1
      On some checks, more than one party is listed on a payor’s
check (i.e., John and Maria Gifford). We note, that in some
instances, respondent may list one payor (i.e., John Gifford) as the
payor when in fact it was the other party, presumably his spouse
(i.e., Maria Gifford) who signed the check. These differences have
no impact on our decision, and for consistency, we use only the name
of the party used by respondent in the notice of deficiency
throughout these appendixes.
                                 - 33 -

                               APPENDIX B

                       1989 Gross Receipts


As Stated in Notice of Deficiency           Concessions   Total

     Payor            Amount
Llamas of Michigan    $2,450                     0        $2,450
Llamas of Michigan    22,050                     0        22,050
Dennis Grodings          900                     0           900
Sea World of Ohio      1,500                     0         1,500
John C. Gifford        9,500                     0         9,500
Sea World of Ohio      1,500                     0         1,500
Sea World of Ohio        105                     0           105
Sea World of Ohio      1,500                     0         1,500
John C. Gifford        1,200                     0         1,200
Sea World of Ohio      1,500                     0         1,500
State of Ohio          3,649                     0         3,649
Valley Las Vegas       1,815                 ($1,815)        0
Ronald G. DeRhodes    22,000                     0        22,000
Canton Veterinary
 Hospital              5,000                     0         5,000
Sea World of Ohio      3,000                     0         3,000
Wendy H. Arbogast      1,800                     0         1,800
Constance A. Halle       150                     0           150
William C. Crawford      200                     0           200
William C. Crawford    1,000                     0         1,000
Sea World of Ohio      1,500                     0         1,500
Sea World of Ohio      1,500                     0         1,500
Sea World of Ohio      1,500                     0         1,500
Ronald C. Blidar       1,800                     0         1,800
Ronald C. Blidar       1,000                     0         1,000
Sea World of Ohio      1,500                     0         1,500
John C. Gifford          600                     0           600
  Total               90,219                  (1,815)     88,404
                                    - 34 -

                                  APPENDIX C

                           1990 Gross Receipts

As Stated in Notice of Deficiency               Concessions       Total

     Payor              Amount
John C. Gifford         $9,500                        0           $9,500
Educational
  Zoological
  Programs, Inc.           100                       0               100
Kerney L. Martini        8,500                       0             8,500
Scavenger Oil Corp.      1,800                   ($1,800)            0
Sea World of Ohio        1,500                       0             1,500
Kerney L. Martini        7,500                       0             7,500
Intuit                       2                       0                 2
Sea World of Ohio        1,500                       0             1,500
Educational
  Zoological
  Programs, Inc.           350                        0              350
Sea World of Ohio        1,500                        0            1,500
Sea World of Ohio        1,200                        0            1,200
Sea World of Ohio        1,500                        0            1,500
Wendy H. Arbogast          200                        0              200
Educational
  Zoological
  Programs Inc.            100                        0              100
Sea World of Ohio        1,500                        0            1,500
Sea World of Ohio        1,500                        0            1,500
Robert Sabo                145                        0              145
Sea World of Ohio        1,500                        0            1,500
Ronald G. DeRhodes       1,200                        0            1,200
State of Ohio              728                        0              728
Wendy H. Arbogast        1,800                        0            1,800
Sea World of Ohio        1,500                        0            1,500
Sea World of Ohio        1,500                        0            1,500
Robert Sabo                135                        0              135
Robert Sabo                210                        0              210
Sea World of Ohio        1,500                        0            1,500
Educational
  Zoological
  Programs, Inc.            100                      0               100
William Boever          15,500                       0            15,500
Robert Sabo                  90                      0                90
Sea World of Ohio         1,500                      0             1,500
Sea World of Ohio         1,500                      0             1,500
Sea World of Ohio         9,000                      0             9,000
                       1
  Total                  76,160                   (1,800)         74,360
      1
       In the notice of deficiency, the total is $74,360, however, this
appears to be an adding error.
                                   - 35 -

                           1990 Royalty Income


     Payor              Amount                 Concessions        Total
                        1
Scavenger Oil Corp.       $1,800                   $0            $1,800
Pennzoil Products            257                    0               257
Pennzoil Products            289                    0               289
Pennzoil Products            443                    0               443
  Total                    2,789                    0             2,789

    Total Income2        78,949                  (1,800)         77,149
     1
        Respondent originally included payment from Scavenger Oil in its
computation of petitioner’s gross receipts from the sale of animals and for
royalty income. In respondent’s concessions, the double counting of this one
check was eliminated. We note that the record is not clear on whether the
payment was for the purchase of an animal or for royalty payments.
Nevertheless, it is clear that petitioner received an $1,800 payment from
Scavenger Oil in 1990. Whether the check represents payment for the purchase
of an animal or royalty income has no bearing on the outcome of this case. In
either case, it is taxable income to petitioner as ordinary income.
      2
        Includes totals from previous page.
                                     - 36 -

                                  APPENDIX D

                            1991 Gross Receipts


As Stated in Notice of Deficiency                 Concessions    Total

     Payor              Amount
Robert Sabo              $600                            0        $600
Robert Sabo                70                            0          70
Robert Sabo                35                            0          35
Fish and Feathers
 International            250                          0           250
Robert Sabo             1,000                          0         1,000
Robert Sabo               500                          0           500
Bad Film               10,500                     ($10,500)         0
Educational
  Zoological
  Programs Inc.           200                           0          200
State of Ohio           1,000                           0        1,000
Robert Sabo                35                           0           35
Robert Sabo               123                           0          123
Avian Farms             2,750                           0        2,750
Mary Z. Reed              500                           0          500
Avian Farms                35                           0           35
ITT Hartford              595                           0          595
Robert Sabo                66                           0           66
Avian Farms             1,000                           0        1,000
Sea World of Ohio       1,800                           0        1,800
Avian Farms             1,000                           0        1,000
Mary Z. Reed            1,500                           0        1,500
Sea World of Ohio       1,800                           0        1,800
Sea World of Ohio       1,200                           0        1,200
  Total                26,559                       (10,500)    16,059


                            1991 Royalty Income

     Payor              Amount                    Concessions    Total
Pennzoil Products         $249                        $0          $249
Pennzoil Products          209                         0           209
Pennzoil Products          241                         0           241
Pennzoil Products          337                         0           337
Pennzoil Products          217                         0           217
Pennzoil Products          578                         0           578
Pennzoil Products          369                         0           369
  Total                  2,199                         0         2,199

     Total Income1      28,758                      (10,500)    18,258
     1
      There is a $1 difference in the totals due to rounding.
                                     - 37 -

                                  APPENDIX E

                            1992 Gross Receipts


As Stated in Notice of Deficiency                 Concessions    Total

     Payor              Amount
Educational
  Zoological
  Programs, Inc.           $100                          0         $100
Anheuser-Busch            2,000                          0        2,000
Anheuser-Busch            2,700                          0        2,700
Anheuser-Busch            1,400                          0        1,400
Timothy L. Charles          500                          0          500
Anheuser-Busch            1,400                          0        1,400
Avian Farms                 560                          0          560
Avian Farms                 350                          0          350
Avian Farms                  70                          0           70
Anheuser-Busch            1,600                          0        1,600
Anheuser-Busch            1,200                          0        1,200
Anheuser-Busch            1,200                          0        1,200
Anheuser-Busch            1,200                          0        1,200
Cortland Savings
 Bank                      391                       ($391)         0
Anheuser-Busch           1,200                          0         1,200
Anheuser-Busch           1,200                          0         1,200
Anheuser-Busch           1,200                          0         1,200
  Total                 18,271                        (391)      17,880


                            1992 Royalty Income

     Payor              Amount                    Concessions    Total
Pennzoil Products         $155                        $0          $155
Pennzoil Products          281                         0           281
Pennzoil Products          257                         0           257
Pennzoil Products          332                         0           332
Pennzoil Products          745                         0           745
Pennzoil Products          432                         0           432
 Total                   2,203                         0         2,203

    Total Income1        20,474                       (391)     20,083
     1
      There is a $1 difference in the totals due to rounding.
                                - 38 -

                              APPENDIX F

                       1988 Gross Receipts


                                                    Deposited in
     Payor           Amount       Payee             Account No.
Sea World of Ohio     $500      Dr. Temple
Sea World of Ohio      500      Dr. Temple
Sea World of Ohio    1,000      Dr. Temple
Sea World of Ohio    1,500      Dr. Temple
Swan Lake Llamas     5,750      Plume Enterprises   400359855
Sea World of Ohio    1,500      Dr. Temple
Sea World of Ohio    1,500      Dr. Temple
Sea World of Ohio    1,500      Dr. Temple
Sea World of Ohio    1,500      Dr. Temple
Sea World of Ohio    5,000      Plume Enterprises   400359855
Jerome T. Grone      2,500      Plume Enterprises   400359855
Sea World of Ohio    1,500      Dr. Temple
Sunny Hill Farm      1,500      Plume Enterprises   400359855
John C. Gifford        100      Plume Enterprises   400359855
Sunny Hill Farm     13,500      Plume Enterprises   400359855
John C. Gifford      1,100      Plume Enterprises   400359855
John C. Gifford      7,300      Plume Enterprises   400359855
  Total             47,750
                                - 39 -

                              APPENDIX G

                      1989 Gross Receipts

                                                    Deposited in
     Payor          Amount          Payee           Account No.
Llamas of Michigan   $2,450     Plume Enterprises   400359855
Llamas of Michigan   22,050     Plume Enterprises   400359855
Dennis Grodings         900     Plume Enterprises   400359855
Sea World of Ohio     1,500     Plume Enterprises   400359855
John C. Gifford       9,500     Plume Enterprises   400359855
Sea World of Ohio     1,500     Plume Enterprises   400359855
Sea World of Ohio       105     Plume Enterprises   400359855
Sea World of Ohio     1,500     Plume Enterprises   400359855
John C. Gifford       1,200     Plume Enterprises   400359855
Sea World of Ohio     1,500     Plume Enterprises   400359855
State of Ohio         3,649     Plume Enterprises   400359855
Ronald G. DeRhodes   22,000     Plume Enterprises   400359855
Canton Veterinary
 Hospital             5,000     Plume Enterprises   400359855
Sea World of Ohio     3,000     Plume Enterprises   400359855
Wendy H. Arbogast     1,800     Plume Enterprises   400359855
Constance A. Halle      150     Plume Enterprises   400359855
William C. Crawford     200     Plume Enterprises   400359855
William C. Crawford   1,000     Plume Enterprises   400359855
Sea World of Ohio     1,500     Plume Enterprises   400359855
Sea World of Ohio     1,500     Plume Enterprises   400359855
Sea World of Ohio     1,500     Plume Enterprises   400359855
Ronald C. Blidar      1,800     Plume Enterprises   400359855
Ronald C. Blidar      1,000     Plume Enterprises   400359855
Sea World of Ohio     1,500     Plume Enterprises   400359855
John C. Gifford         600     Galingale Group     400359863
  Total              88,404
                                     - 40 -

                                  APPENDIX H

                            1990 Gross Receipts

                                                               Deposited in
     Payor              Amount            Payee                Account No.
John C. Gifford         $9,500       Plume Enterprises         400359855
Educational
  Zoological
  Programs, Inc.            100      Plume    Enterprises      400359855
Kerney L. Martini         8,500      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Kerney L. Martini         7,500      Plume    Enterprises      400359855
Intuit                        2      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Educational
  Zoological
  Programs, Inc.            350      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Sea World of Ohio         1,200      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Wendy H. Arbogast           200      Plume    Enterprises      400359855
Educational
  Zoological
  Programs Inc.             100      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Robert Sabo                 145      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Ronald G. DeRhodes        1,200      Plume    Enterprises      400359855
State of Ohio               728      Plume    Enterprises      400359855
Wendy H. Arbogast         1,800      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Robert Sabo                 135      Plume    Enterprises      400359855
Robert Sabo                 210      Plume    Enterprises      400359855
Sea World of Ohio         1,500      Plume    Enterprises      400359855
Educational
  Zoological
  Programs, Inc.           100       Plume Enterprises         400359855
William Boever          15,500       Galingale Llamas1         400359863
Robert Sabo                 90       Plume Enterprises         400359855
Sea World of Ohio        1,500       Plume Enterprises         400359855
Sea World of Ohio        1,500       Plume Enterprises         400359855
Sea World of Ohio        9,000       Plume Enterprises         400359855
  Total                 74,360

     1
      The deposit slip shows that Galingale Llamas belongs to Galingale Group.
                                       - 41 -


                                 1990 Royalty Income

                                                                  Deposited in
     Payor          Amount                  Payee                 Account No.
Scavenger Oil Corp. $1,800             Plume Enterprises            400359855
Pennzoil Products      257             Trundle Management
                                         Eton Trust Co.,
                                         Ltd. Trustee1             1163506106
Pennzoil Products             289      Trundle Management
                                         Eton Trust Co.,
                                         Ltd. Trustee              1163506106
Pennzoil Products             443      Trundle Management
                                         Eton Trust Co.,
                                         Ltd. Trustee              1163506106
  Total                    2,789

     Total Income2        77,149
       1
         Petitioner’s address is listed as the mailing address for all checks made
payable to Trundle Management.
       2
         Includes totals from previous page.
                                       - 42 -
                                     APPENDIX I

                                1991 Gross Receipts

                                                                  Deposited in
   Payor              Amount                Payee                 Account No.
Robert Sabo            $600             Wendy Arbogast              400359855
Robert Sabo              70             Plume Enterprises           400359855
Robert Sabo              35             Plume Enterprises           400359855
Fish and Feathers
 International          250             Plume Enterprises           400359855
Robert Sabo           1,000             Plume Enterprises           400359855
Robert Sabo             500             Plume Enterprises           400359855
Educational
  Zoological
  Programs, Inc.        200             Plume   Enterprises         400359855
State of Ohio         1,000             Plume   Enterprises         400359855
Robert Sabo              35             Plume   Enterprises         400359855
Robert Sabo             123             Plume   Enterprises         400359855
Avian Farms           2,750             Plume   Enterprises         400359855
Mary Z. Reed            500             Plume   Enterprises         400359855
Avian Farms              35             Plume   Enterprises         400359855
ITT Hartford            595             Plume   Enterprises         400359855
Robert Sabo              66             Plume   Enterprises         400359855
Avian Farms           1,000             Plume   Enterprises         400359855
Sea World of Ohio     1,800             Plume   Enterprises         400359855
Avian Farms           1,000             Plume   Enterprises         400359855
Mary Z. Reed          1,500             Plume   Enterprises         400359855
Sea World of Ohio     1,800             Plume   Enterprises         400359855
Sea World of Ohio     1,200             Plume   Enterprises         400359855
  Total              16,059

                                1991 Royalty Income
                                                                  Deposited in
      Payor           Amount                 Payee                Account No.
Pennzoil Products      $249             Trundle Management
                                          Eton Trust Co.,
                                          Ltd., Trustee1           1163506106
Pennzoil Products       209             Trundle Management
                                          Eton Trust Co.,
                                          Ltd., Trustee            1163506106
Pennzoil Products       241             Trundle Management
                                          Eton Trust Co.,
                                          Ltd., Trustee            1163506106
Pennzoil Products       337             Trundle Management
                                          Eton Trust Co.,
                                          Ltd., Trustee            1163506106
Pennzoil Products       217             Trundle Management
                                          Eton Trust Co.,
                                          Ltd., Trustee            1163506106
Pennzoil Products       578             Trundle Management
                                          Eton Trust Co.,
                                          Ltd., Trustee            1163506106
Pennzoil Products       369             Trundle Management
                                          Eton Trust Co.,
                                          Ltd., Trustee            1163506106
  Total                2,199

    Total Income2     18,258
      1
         Petitioner’s address is listed as the mailing address for all checks made
payable to Trundle Management.
       2
         There is a $1 difference in the totals due to rounding.
                                       - 43 -

                                     APPENDIX J

                               1992 Gross Receipts

                                                                   Deposited in
     Payor                Amount              Payee                Account No.
Educational
  Zoological
  Programs, Inc.            $100       Plume Enterprises             400359855
Anheuser-Busch             2,000       Plume Enterprises             400359855
Anheuser-Busch             2,700       Plume Enterprises             400359855
Anheuser-Busch             1,400       Plume Enterprises             400359855
Timothy L. Charles           500       Galingale Group               400359863
Anheuser-Busch             1,400       Plume Enterprises             400359855
Avian Farms                  560       Galingale Group               400359863
Avian Farms                  350       Galingale Group               400359863
Avian Farms                   70       Plume Enterprises             400359855
Anheuser-Busch             1,600       Plume Enterprises             23-043-10
Anheuser-Busch             1,200       Plume Enterprises             23-043-10
Anheuser-Busch             1,200       Plume Enterprises             23-043-10
Anheuser-Busch             1,200       Plume Enterprises             23-043-10
Anheuser-Busch             1,200       Plume Enterprises             23-043-10
Anheuser-Busch             1,200       Plume Enterprises             23-043-10
Anheuser-Busch             1,200       Plume Enterprises             23-043-10
  Total                   17,880

                               1992 Royalty Income

                                                                   Deposited in
     Payor                Amount            Payee                  Account No.
Pennzoil Products          $155        Trundle Management
                                         Eton Trust Co.,
                                         Ltd., Trustee1              1163506106
Pennzoil Products            281       Trundle Management
                                         Eton Trust Co.,
                                         Ltd., Trustee               1163506106
Pennzoil Products            257       Trundle Management
                                         Eton Trust Co.,
                                         Ltd., Trustee               1163506106
Pennzoil Products            332       Trundle Management
                                         Eton Trust Co.,
                                         Ltd., Trustee               1163506106
Pennzoil Products            745       Trundle Management
                                         Eton Trust Co.,
                                         Ltd., Trustee               1163506106
Pennzoil Products            432       Trundle Management
                                         Eton Trust Co.,
                                         Ltd., Trustee               1163506106
 Total                    2,203

    Total Income2         20,083
       1
         Petitioner’s address is listed as the mailing address for all checks made
payable to Trundle Management.
       2
         There is a $1 difference in the totals due to rounding.
