Edward P. Knoll and Mary K. King-Knoll - Page 1

                                 T.C. Memo. 2003-277                                  


                               UNITED STATES TAX COURT                                



               EDWARD P. KNOLL AND MARY K. KING-KNOLL, Petitioners v.                 
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket Nos. 10973-99, 5281-00.  Filed September 23, 2003.              


               Robert J. Paley and Scott A. Carlson, for petitioners.                 
               Sean R. Gannon, for respondent.                                        


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               GERBER, Judge:  Respondent determined deficiencies in                  
          petitioners’ Federal income tax and penalties for the taxable               
          years 1993, 1994, and 1995, as follows:                                     









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