- 6 - that the partners were entitled to only 50 percent of the partnership’s profits each and were not entitled to any amounts based on the new agreement. On October 16, 2002, the jury found for petitioner “with regard to the partnership between January 1, 1996 through December 31, 1998"; i.e., the income of the partnership should be allocated according to the new agreement. Although petitioner received a favorable jury verdict, as of the time of the submission of the parties’ moving papers in the instant case, the partnership receipts remained in escrow pending the Massachusetts Superior Court’s decision on petitioner’s motion for an accounting. Respondent determined a $41,338 deficiency based on the $121,000 reported to petitioner on his Schedule K-1 and mailed petitioner a notice of deficiency on May 14, 2004. Petitioner timely petitioned this Court. After petitioner provided respondent an income analysis of the partnership’s income for 1998 during discovery, respondent increased the deficiency to $53,077. Using the income analysis petitioner provided, respondent determined petitioner’s distributive share under the new agreement was $151,682. 2(...continued) stolen by Mr. Cohen. Respondent deducted the stolen deposits from the calculation of the increased deficiency.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011