Arun and Asmita Bhatia - Page 1

                                 T.C. Memo. 1996-429                                  


                               UNITED STATES TAX COURT                                


                       ARUN AND ASMITA BHATIA, Petitioners v.                         
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 21830-94.               Filed September 24, 1996.           


               Barry L. Gardiner, for petitioners.                                    
               Paul N. Schneiderman, for respondent.                                  


                                 MEMORANDUM OPINION                                   

               TANNENWALD, Judge:  Respondent determined a deficiency in              
          petitioners' 1987 Federal income tax in the amount of $138,290              
          plus an addition to tax of $34,573 under section 6661.1                     



          1  All section references are to the Internal Revenue Code in               
          effect for the year in issue, and all Rule references are to the            
          Tax Court Rules of Practice and Procedure.                                  




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