Allen C. Chamberlin and Martha L. Chamberlin - Page 9

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          corroborate petitioner’s testimony.  The unavailability of                  
          corroborating documents does not excuse a taxpayer’s failure to             
          carry the burden of proof.  See Malinowski v. Commissioner, 71              
          T.C. 1120, 1124-1125 (1979).                                                
               Petitioners claim that they were the victims of theft at the           
          hands of Vavlitis and, therefore, should be entitled to deduct              
          their losses arising from their loans to and investment in                  
          Pharmacare as a section 165(c) theft loss.  Petitioner also                 
          claims that he engaged in the trade or business of promoting                
          pharmaceutical companies from 1978 to 1985 and, therefore, that             
          he is entitled to deduct any losses arising from loans to or                
          investment in Pharmacare, The Chamberlin Corp., and Chamberlin              
          Parenteral as section 162(a) business expenses or section 166(a)            
          business bad debts.                                                         
               In coming to a decision on the issues in this case, it is              
          necessary to calculate the amount of losses incurred by                     
          petitioners in years predating the tax years in issue.  We do not           
          have jurisdiction over years prior to 1985.  See sec. 6214(b).              
          However, the Court may consider events that occurred in prior               
          years when such consideration is necessary to determine the tax             
          liability for the years in issue.  See Lone Manor Farms, Inc. v.            
          Commissioner, 61 T.C. 436, 440 (1974), affd. without published              
          opinion 510 F.2d 970 (3d Cir. 1975).                                        

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