Wayne Payne and Dorene J. Payne - Page 1

                                 T.C. Memo. 2005-130                                  


                               UNITED STATES TAX COURT                                


                   WAYNE PAYNE AND DORENE J. PAYNE, Petitioners v.                    
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 6311-03.             Filed May 31, 2005.                    

               Thomas E. Brever, for petitioners.                                     
               David W. Sorensen, for respondent.                                     


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               GOEKE, Judge:  Respondent determined deficiencies in                   
          petitioners’ 1993, 1994, and 1995 Federal income taxes of                   
          $29,881, $81,985, and $45,222, respectively.  Respondent also               
          determined that petitioners were liable for fraud penalties under           









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