MEMORANDUM FINDINGS OF FACT AND OPINION
WHERRY, Judge:
In these consolidated cases, respondent determined the following deficiencies and penalties with respect to petitioners' Federal income taxes:
Year Deficiency Penalty Sec. 6662 I.R.C. 1996 $1,364,714 $272,942.80 1997 2,348,943 608,473.00 1998 1,108,775 221,755.00
After concessions by the parties, the principal issues...
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