Mark D. and Sheldon C. Morgan - Page 1

                                 T.C. Memo. 1997-132                                  


                               UNITED STATES TAX COURT                                


                     MARK D. AND SHELDON C. MORGAN, Petitioners                       
                   v. COMMISSIONER OF INTERNAL REVENUE, Respondent                    


               Docket No. 15590-94.                   Filed March 13, 1997.           


               Lewis R. Wiener, for petitioners.                                      
               Daniel J. Parent, for respondent.                                      


                                 MEMORANDUM OPINION                                   

               JACOBS, Judge:  By separate notices of deficiency, both dated          
          May 27, 1994, respondent determined the following deficiencies and          
          accuracy-related penalties with respect to petitioners' Federal             
          income taxes:                                                               







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