PDV America, Inc. and Subsidiaries - Page 1

                                 T.C. Memo. 2004-118                                  


                               UNITED STATES TAX COURT                                


                  PDV AMERICA, INC. AND SUBSIDIARIES, Petitioner v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                  PDV HOLDING, INC. AND SUBSIDIARIES, Petitioner v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket Nos. 12124-02, 12125-02.    Filed May 12, 2004.                 

               Lisa M. Cipriano, Michael A. Clark, and Kevin R. Pryor, for            
          petitioners.                                                                
               C. Glenn McLoughlin, for respondent.                                   


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               MARVEL, Judge:  Respondent determined deficiencies with                
          respect to petitioners’ income tax as follows:                              








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