Nicholas A. and Marjorie E. Paleveda - Page 1

                                                                                     








                                 T.C. Memo. 1997-416                                  


                               UNITED STATES TAX COURT                                


                NICHOLAS A. AND MARJORIE E. PALEVEDA, Petitioners v.                  
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 840-96.                 Filed September 18, 1997.           
                                                                                     


               Nicholas A. Paleveda, for petitioners.                                 
               Clinton M. Fried, for respondent.                                      


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               WELLS, Judge:  Respondent determined deficiencies in                   
          petitioners' Federal income tax and additions to tax and                    
          accuracy-related penalties for the taxable years 1990 and 1991 as           
          follows:                                                                    
                                        Additions           Accuracy-Related          
                                        to Tax                Penalties               
          Year           Deficiency         Sec. 6651(a)(1)         Sec. 6662(a)      
          1990           $45,861        $11,465             $9,172                    
          1991           47,688              11,922         9,538                     




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