T.C. Memo. 2006-278                                  
                               UNITED STATES TAX COURT                                
              HJ BUILDERS, INC., Petitioner v. COMMISSIONER OF INTERNAL               
                                 REVENUE, Respondent                                  
           PAUL W. AND CHARLENE R. WRIGHT, Petitioners v. COMMISSIONER OF             
                            INTERNAL REVENUE, Respondent                              
               Docket Nos. 8841-05, 8842-05.      Filed December 28, 2006.            
               Joseph Jay Bullock and Karen Bullock Kreeck, for                       
          petitioners.                                                                
               S. Mark Barnes, for respondent.                                        
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               COHEN, Judge:  Respondent determined deficiencies and                  
          penalties in these consolidated cases with respect to petitioner            
          HJ Builders, Inc. (HJ Builders or the corporation), for its                 
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