Paul S. Lindsey, Jr. and Kristen L. Lindsey - Page 1

                                 T.C. Memo. 2004-113                                  


                               UNITED STATES TAX COURT                                


             PAUL S. LINDSEY, JR. AND KRISTEN L. LINDSEY, Petitioners v.              
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 16843-02.           Filed May 11, 2004.                     


               Jim J. Shoemake, Dwight E. Cole, and Matthew S. McBride, for           
          petitioners.                                                                
               Michael W. Bitner, for respondent.                                     


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               COHEN, Judge:  Respondent determined deficiencies in                   
          petitioners’ Federal income taxes, an addition to tax, and a                
          penalty as follows:                                                         








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