David Rendel and Rachel Rendel - Page 1

                                 T.C. Memo. 1995-593                                   


                               UNITED STATES TAX COURT                                 


                   DAVID RENDEL AND RACHEL RENDEL, Petitioners v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                       


               Docket No. 11878-93.      Filed December 14, 1995.                      

               David M. Kirsch, for petitioners.                                       
               Allan D. Hill, for respondent.                                          


                       MEMORANDUM FINDINGS OF FACT AND OPINION                         

               SWIFT, Judge:  Respondent determined a deficiency in                    
          petitioners' 1983 Federal income tax and additions to tax for                
          fraud and for a substantial underpayment of tax as follows:                  










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