Bryan J. and Christine N. Baugh - Page 1

                                 T.C. Memo. 1996-70                                   


                               UNITED STATES TAX COURT                                


                   BRYAN J. AND CHRISTINE N. BAUGH, Petitioners v.                    
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 12366-94.       Filed February 21, 1996.                    


               J. Scott Broome, for petitioners.                                      
               Carol A. Szczepanik, for respondent.                                   


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               COHEN, Judge:  Respondent determined deficiencies in                   
          petitioners’ Federal income taxes and an addition to tax and                
          penalties as follows:                                                       
                                   Addition to Tax & Penalties                        
                                            Sec.           Sec.                      
          Year                Deficiency     6653(a)(1)     6662(a)                   
               1988           $4,242         $212           ---                       
               1990           7,724          ---            $1,545                    




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