William L. Richter - Page 15

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          obligated to pay petitioner $650 only upon completion of the 12th           
          month of petitioner’s contract, if petitioner complied with his             
               The record indicates that petitioner did not send the                  
          required reference letter to HEH detailing his experience with              
          the solar energy heater until November 1996.  Consequently, the             
          earliest date that HEH was obliged to allocate income to                    
          petitioner was November 1996.  In addition, petitioner produced             
          no evidence, other than the conflicting testimony of Mr.                    
          Sparkman, that the $650 was ever actually allocated or                      
          distributed to petitioner.                                                  
               Similarly, the other documentary evidence petitioner                   
          produced does not adequately support his assertion that HEH                 
          actually allocated income to petitioner for 1995.  Petitioner did           
          not claim any income from HEH on his 1995 return and has not                
          filed an amended return.  Furthermore, HEH did not report any               
          allocation or distribution of income to petitioner on its                   
          original 1995 Form 1041 or on the original 1995 Schedule K-1                
          issued to petitioner.                                                       
               Petitioner introduced at trial what purports to be HEH’s               
          amended 1995 return and an amended 1995 Schedule K-1 as proof               
          that HEH earned income and allocated $650 of that income to                 
          petitioner for 1995.  The record does not show, however, whether            
          HEH’s amended return was actually filed.  Although the amended              

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