T.C. Memo. 1997-400                                            
                                     UNITED STATES TAX COURT                                          
                     CARL E. JONES AND ELAINE Y. JONES, Petitioners v.                                
                        COMMISSIONER OF INTERNAL REVENUE, Respondent                                  
            Docket No. 23676-93.               Filed September 10, 1997.                              
            William E. Frantz and John B. Grattan, for petitioners.                                   
            Eric B. Jorgensen, for respondent.                                                        
                                        MEMORANDUM OPINION                                            
                  PARR, Judge:  Respondent determined deficiencies in, and                            
            penalties on, the Federal income tax for 1989, 1990, and 1991 of                          
            Carl E. Jones (petitioner) and Elaine Y. Jones (Mrs. Jones) as                            
            follows:                                                                                  
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