Patricia B. Paterson, et al. - Page 1















                                 T.C. Memo. 2007-109                                  


                               UNITED STATES TAX COURT                                


                     PATRICIA B. PATERSON, ET AL.1 Petitioner v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket Nos.  8093-04, 8094-04,    Filed April 30, 2007.                
                           22397-04.                                                  


               Thomas Edward Brever, for petitioners.                                 
               David W. Sorenson and Lisa R. Woods, for respondent.                   


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               KROUPA, Judge:  Respondent determined deficiencies in                  
          petitioners’ Federal income taxes and fraud penalties under                 




               1This case is consolidated for briefing, trial and opinion             
          with the cases of George M. Paterson, Docket No. 8094-04, and               
          George M. Paterson, Docket No. 22397-04.  Mr. and Mrs. Paterson             
          are referred to collectively as petitioners.                                





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