Joseph L. Barnhill, Jr. and Cynthia A. Barnhill - Page 1

                                 T.C. Memo. 1996-97                                   


                               UNITED STATES TAX COURT                                


                  JOSEPH L. BARNHILL, JR. AND CYNTHIA A. BARNHILL,                    
          Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent                 


               Docket No. 17955-87.              Filed March 5, 1996.                 


               Declan J. O’Donnell, for petitioners.                                  
                                                                                     
               Jason M. Silver, for respondent.                                       


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               COHEN, Judge:  Respondent determined deficiencies in and               
          additions to petitioners’ Federal income tax as follows:                    












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