Cheng C. and Susan L. Kao, et al. - Page 1

                                       T.C. Memo. 1997-323                                            

                                     UNITED STATES TAX COURT                                          

                     CHENG C. AND SUSAN L. KAO, ET AL.,1 Petitioners v.                               
                        COMMISSIONER OF INTERNAL REVENUE, Respondent                                  

                  Docket Nos. 2982-94, 2983-94,      Filed July 15, 1997.                             

                  Robert H. Solomon and Mark L. Quazzo, for petitioners.                              
                  Rebecca T. Hill and Bryce A. Kranzthor, for respondent.                             

                           MEMORANDUM FINDINGS OF FACT AND OPINION                                    

                  FOLEY, Judge:  Respondent determined the following                                  
           deficiencies, additions to tax, and accuracy-related penalties                             
           with respect to petitioners' Federal income taxes:                                         

                  1  Cases of the following petitioners are consolidated                              
           herewith:  Kolyn Enterprises Corp., docket No. 2983-94; and KCW                            
           Associates, Inc., docket No. 6667-95.                                                      

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