Layne E. Preslar and Sue F. Preslar - Page 1

                                 T.C. Memo. 1996-543                                  


                               UNITED STATES TAX COURT                                


                 LAYNE E. PRESLAR AND SUE F. PRESLAR, Petitioners v.                  
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 14051-94.                Filed December 17, 1996.           


               Ron Lewis, for petitioners.                                            
               Pamelya P. Herndon, for respondent.                                    


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               SWIFT, Judge:  Respondent determined a deficiency in                   
          petitioners' 1989 joint Federal income tax of $123,028 and an               
          addition to tax under section 6651(a)(1) of $6,151.                         









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