Charles R. Harp and April B. Harp - Page 1

                                 T.C. Memo. 1996-380                                  


                               UNITED STATES TAX COURT                                

                  CHARLES R. HARP AND APRIL B. HARP, Petitioners v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 7456-94.             Filed August 19, 1996.                 

               Gary R. DeFrang, Joseph M. Wetzel, and Russell A. Sandor,              
          for petitioners.                                                            
               Cheryl B. Harris, for respondent.                                      

                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               CHIECHI, Judge:  Respondent determined the following defi-             
          ciencies in, and accuracy-related penalties on, petitioners'                
          Federal income tax:                                                         
                                       Accuracy-Related Penalty                      
               Year      Deficiency         Section 6662(a)1                          
                                                                                     
               1989      $235,120            $47,024                                  
               1990       95,898               19,180                                 

          1  All section references are to the Internal Revenue Code in               
          effect for the years at issue.  All Rule references are to the              
          Tax Court Rules of Practice and Procedure.                                  


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