Zalman Melnik and Lea Melnik - Page 1

                                 T.C. Memo. 2006-25                                   


                               UNITED STATES TAX COURT                                


                    ZALMAN MELNIK AND LEA MELNIK, Petitioners v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                   MOSHE M. MELNIK, Petitioner v. COMMISSIONER OF                     
                            INTERNAL REVENUE, Respondent                              

               Docket Nos. 13392-01, 13395-01.    Filed February 15, 2006.            

               George W. Connelly, Jr., and Lawrence Sherlock, for                    
          petitioners.                                                                
               W. Lance Stodghill, for respondent.                                    


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               MARVEL, Judge:  In these consolidated cases, respondent                
          determined the following deficiencies and penalties in                      
          petitioners’ Federal income taxes:                                          







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