James B. and Joan E. Murtaugh - Page 1

                                 T.C. Memo. 1997-319                                  


                               UNITED STATES TAX COURT                                


                    JAMES B. AND JOAN E. MURTAUGH, Petitioners v.                     
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 5181-95.              Filed July 9, 1997.                   

               Hedy Pollak Forspan and Mei Chen, for petitioners.                     
               Drita Tonuzi, for respondent.                                          


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               GALE, Judge:  Respondent determined the following                      
          deficiencies in, and additions to, petitioners' Federal income              
          taxes.                                                                      











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