T.C. Memo. 2007-238                                  
                               UNITED STATES TAX COURT                                
              LEE F. HANEY, SR. AND JEAN C. HANEY, a.k.a. JEANIE HANEY,               
                                   Petitioners v.                                     
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
               Docket No. 9459-06.               Filed August 20, 2007.               
               Kevin D. Watley and B. David Sisson, for petitioners.                  
               Ann L. Darnold, for respondent.                                        
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               COHEN, Judge:  Respondent determined deficiencies and                  
          penalties with regard to petitioners’ Federal income tax as                 
          follows:                                                                    
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