Lee F. Haney, Sr., and Jean C. Haney, a.k.a. Jeanie Haney - Page 1















                                 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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