Hyman S. and Gaile S. Zfass - Page 1

                                 T.C. Memo. 1996-167                                  



                               UNITED STATES TAX COURT                                


                     HYMAN S. AND GAILE S. ZFASS, Petitioners v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 9290-94.             Filed April 2, 1996.                   


               Craig D. Bell, for petitioners.                                        
               William L. Ringuette, for respondent.                                  


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               JACOBS, Judge:  Respondent determined the following additions          
          to petitioners' Federal income taxes in two notices of deficiency,          
          both dated March 3, 1994:                                                   








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