Steven J. and Terry L. Namyst - Page 1

                                 T.C. Memo. 2004-263                                  


                               UNITED STATES TAX COURT                                


                    STEVEN J. AND TERRY L. NAMYST, Petitioners v.                     
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 20313-03.             Filed November 17, 2004.              

               Jay B. Kelly, for petitioners.                                         
               Blaine Holiday, for respondent.                                        


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               GOEKE, Judge:  Respondent determined deficiencies of $2,497,           
          $3,724, $2,875, and $3,343, in petitioners’ 1996, 1997, 1998, and           
          1999 Federal income taxes, respectively.  Respondent also                   
          determined penalties under section 66621 of $499.40, $744.80,               

               1Unless otherwise indicated, all section references are to             
          the Internal Revenue Code as amended, and all Rule references are           
                                                             (continued...)           





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