Edward and Ruth Kelly - Page 1

                                        T.C. Memo. 1997-99                                            


                                     UNITED STATES TAX COURT                                          


                            EDWARD AND RUTH KELLY, Petitioners v.                                     
                        COMMISSIONER OF INTERNAL REVENUE, Respondent*                                 


                  Docket Nos. 28233-91, 7795-94.      Filed February 25, 1997.                        
                                                                                                     
                  Geoffrey J. O'Connor, for petitioner Edward Kelly.                                  
                  Norman Trabulus, for petitioner Ruth Kelly.                                         
                  Andrew J. Mandell and Lewis J. Abrahams, for respondent.                            


                                SUPPLEMENTAL MEMORANDUM OPINION                                       

                  BEGHE, Judge:  In our recently filed Memorandum Findings of                         
           Fact and Opinion in these cases (T.C. Memo. 1996-529) (the                                 
           Opinion), we sustained respondent's determinations of                                      
                                                                                                     







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