Sam Kong Fashions, Inc. - Page 2

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          Sam Kong Fashions, Inc.                                                     
          docket No. 9600-02                                                          
          Penalty                                                                     
          Year       Deficiency       Sec. 6663                                       
          1994        $135,643       $101,732.25                                      
          1995         103,999         77,999.25                                      

          Sam Kong                                                                    
          docket No. 9601-02                                                          
          Penalty                                                                     
          Year       Deficiency       Sec. 6663                                       
          1994        $137,026       $102,769.50                                      
          1995         104,129         78,096.75                                      

          Run Yuan Chen                                                               
          docket No. 9601-02                                                          
          Year            Deficiency                                                  
          1994             $137,026                                                   
          1995              104,129                                                   

          The parties have stipulated that Run Yuan Chen is entitled to               
          relief under section 6015(c)1 and is not liable for any                     
          deficiencies in tax, penalties, or interest.                                








               1 Unless otherwise indicated, all section references are to            
          the Internal Revenue Code in effect for the years in issue, and             
          all Rule references are to the Tax Court Rules of Practice and              
          Procedure.                                                                  




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