T.C. Memo. 2002-294                                  
                               UNITED STATES TAX COURT                                
                   THOMAS K. AND BILLE J. SCALLEN, Petitioners v.                     
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
               Docket No. 2563-00.              Filed November 27, 2002.              
               Saul A. Bernick and Neal J. Shapiro, for petitioners.                  
               David L. Zoss, for respondent.                                         
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               RUWE, Judge:  Respondent determined deficiencies of $735,745           
          and $38,296 in petitioner Thomas K. Scallen’s Federal income                
          taxes for 1989 and 1990, respectively.  Respondent determined               
          deficiencies of $25,933, $75,798, and $65,669, in petitioners               
          Thomas K. Scallen’s and Bille J. Scallen’s Federal income taxes             
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