Anthony and Linda Walters - Page 1

                                 T.C. Memo. 1995-543                                  


                               UNITED STATES TAX COURT                                


                      ANTHONY AND LINDA WALTERS, Petitioners v.                       
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 11784-93.      Filed November 16, 1995.                     


               Gerard P. Martin and Paula M. Junghans, for petitioners.               
               Clare J. Brooks, for respondent.                                       


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               WRIGHT, Judge:  Respondent determined deficiencies in and              
          additions to tax and a penalty with respect to petitioners'                 
          Federal income taxes as follows:                                            
                               Additions to Tax and Penalty                           
          Year   Deficiency    Sec. 6653(b)(1)    Sec. 6663      Sec. 6661            
          1987   $10,832       $8,124             -              $2,708               
          1988   35,158        26,369             -              8,790                
          1989   37,450        -                  $28,088        -                    





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