John M. and Carolyn Merritt - Page 1

                                 T.C. Memo. 2003-187                                  


                               UNITED STATES TAX COURT                                


                JOHN M. MERRITT AND CAROLYN MERRITT, Petitioners v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                      J.M.A. & ASSOCIATES, P.C., Petitioner v.                        
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket Nos. 16214-98, 16715-98.      Filed June 30, 2003.              
                                                                                     

               Donald K. Groom, for petitioners.                                      
               Denise G. Dengler, for respondent.                                     


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               SWIFT, Judge:  In these consolidated cases, respondent                 
          determined deficiencies in Federal income tax, additions to tax,            
          and penalties against petitioners as follows:                               







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