PMT, INC. - Page 2

                                        -  -2                                           
               Donna F. Herbert, for respondent.                                      


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               SCOTT, Judge:  Respondent determined a deficiency in                   
          petitioner's Federal income tax in the amount of $426,707, and an           
          accuracy-related penalty under section 6662(a)2 in the amount of            
          $85,341 for petitioner's taxable year ended July 31, 1990.  Some            


          1(...continued)                                                             
          U.S. Tax Court to continue its proceedings involving the debtor             
          in the bankruptcy case, and allowing the IRS to assess any tax              
          liability determined by the U.S. Tax Court in the case before it.           
               On Nov. 6, 1995, this Court issued an order that the stay of           
          proceedings in this case was lifted and allowed petitioner to and           
          including Dec. 20, 1995, within which to file a brief in this               
          case.  In a further order dated Nov. 22, 1995, granting Mitchell            
          R. Miller's motion to withdraw as counsel for petitioner, which             
          order was served on petitioner, the Court specifically stated               
          that petitioner was not relieved of the obligation of filing a              
          brief in this case by Dec. 20, 1995, because of withdrawal of its           
          counsel.                                                                    
               No brief was received by the Court as required by order of             
          the Court.  By order dated Mar. 18, 1996, we granted petitioner             
          to and including Apr. 15, 1996, to file a reply to respondent's             
          brief filed June 21, 1995 (which had been served on petitioner              
          Jan. 16, 1996), and stated that if no brief were received from              
          petitioner on or before Apr. 15, 1996, the Court would proceed              
          with consideration of this case.  The Court has received no brief           
          from petitioner, and, therefore, it has been necessary to                   
          determine the issues in this case without a statement of                    
          petitioner's position with respect to the evidence in the case or           
          petitioner's position with respect to respondent's requested                
          findings of fact and arguments in her brief.                                

          2  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, unless otherwise             
          indicated.                                                                  




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