Michael Buchsbaum - Page 9




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               Respondent contends that Arcanum was not a small partnership           
          for purposes of section 6231(a) because Arcanum’s partners Arthur           
          Stern Jr. Account # 2 and Stuart D. Grodd IRA Account were                  
          trusts.  Respondent points out that Arcanum’s 1990 return                   
          included a Schedule K-1 for a trust named Arthur Stern Jr.                  
          Account # 2, and that Arcanum’s 1990 and 1993 returns each                  
          included a Schedule K-1 for Stuart D. Grodd IRA Account, which              
          was identified as a trust on the Schedules K-1.                             
               Since petitioner contends that we have jurisdiction to                 
          decide whether Arcanum had partnership losses, he must prove by a           
          preponderance of the evidence that jurisdiction exists, Irwin v.            
          VA, 874 F.2d 1092, 1096 (5th Cir. 1989), affd. 498 U.S. 89                  
          (1990); Wheeler’s Peachtree Pharmacy, Inc. v. Commissioner, 35              
          T.C. 177, 180 (1960); La. Naval Stores, Inc. v. Commissioner, 18            
          B.T.A. 533, 536-537 (1929), that is, that each of Arcanum’s                 
          partners was an individual or an estate.                                    
               Petitioner points out that Arcanum checked a box on its                
          1990, 1993, and 1994 returns indicating that it was not subject             
          to the TEFRA partnership procedures and contends that the returns           
          establish that fact.  We disagree.  Tax returns do not establish            
          the truth of the facts stated in them.  Lawinger v. Commissioner,           
          103 T.C. 428, 438 (1994); Wilkinson v. Commissioner, 71 T.C. 633,           
          639 (1979); Roberts v. Commissioner, 62 T.C. 834, 837 (1974).               
          However, statements in a tax return signed by the taxpayer are              






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