MTS International, Inc. - Page 1

                                       T.C. Memo. 1996-118                                             


                                     UNITED STATES TAX COURT                                           


                           MTS INTERNATIONAL, INC., Petitioner v.                                      
                        COMMISSIONER OF INTERNAL REVENUE, Respondent                                   

                              ROBERT C. HUGHES III, Petitioner v.                                      
                        COMMISSIONER OF INTERNAL REVENUE, Respondent                                   


                  Docket Nos. 2161-93, 2247-93.1        Filed March 12, 1996.                          


                  Gary L. Goble, for petitioners.                                                      
                  Frederick W. Krieg and D. Lyndell Pickett, for respondent.                           



                           MEMORANDUM FINDINGS OF FACT AND OPINION                                     
                  COLVIN, Judge:  Respondent determined deficiencies in                                
            petitioners’ Federal income tax and additions to tax as follows:                           

                  1 These cases were consolidated for purposes of trial,                               
            briefing, and opinion.                                                                     




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