T.C. Memo. 1998-343                                  
                               UNITED STATES TAX COURT                                
                         LABELGRAPHICS, INC., Petitioner v.                           
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
               Docket No. 13673-95.              Filed September 28, 1998.            
               Gersham Goldstein, Gregory R. Mowe, Jaime M.W. Sanders, and            
          Peter R. Jarvis, for petitioner.                                            
               Shirley M. Francis, for respondent.                                    
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               PARR, Judge:  Respondent, in a notice of deficiency,                   
          determined against petitioner the following Federal income tax              
          deficiencies, an addition to tax, and a penalty:                            
               Year                   Addition to Tax     Penalty                     
           Ended    Deficiency       Sec. 6661       Sec. 6662                        
          6/30/87    $48,610          $12,153            --                           
          6/30/90    210,354             --           $42,071                         
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