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a combination of withheld taxes ($1,868), estimated tax payments
($17,000), and other refundable credits ($500). On June 13,
1983, respondent refunded to petitioners $14,851.79, consisting
of $14,549 plus interest thereon (for the period Apr. 15 through
June 1, 1983) in the amount of $302.79 for 1982.
A. The Transaction
On the recommendation of John’s father, an accountant and
tax attorney, John3 acquired a limited partnership interest in
The Thompson Equipment Associates partnership (hereinafter
sometimes referred to as TEA) during September 1981. John
acquired the interest in TEA in exchange for a $12,500 check and
a $12,500 promissory note which matured on February 15, 1982.
Marian issued a check on February 10, 1982, that paid the
promissory note in full.
Petitioners claimed flowthrough losses from TEA on their tax
returns for 1981, 1982, and 1983. Petitioners carried back
“credits/losses” from 1981 to 1978 and 1979. As a result of the
“credits/losses” carried back from 1981 to 1979, on June 28,
1982, respondent refunded to petitioners $10,375.38, consisting
of $9,568 plus interest thereon (for the period Jan. 1 through
3 The parties have stipulated that (1) John acquired the
partnership interest, and (2) both petitioners were limited
partners. The parties have not reconciled the two stipulations.
It does not appear to matter to the instant case whether Marian
also was a limited partner in Thompson Equipment Associates. For
convenience, we refer to John as the limited partner.
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