- 34 -
Falls Investors, L.P.,16 for 1996, 1997, and 1998. RA Colline
did not receive any information regarding Hofflund Polone from
petitioner, and Mr. Harbin provided information only for 1998
regarding Bedford Falls Investors, L.P.
In the November 8 IDR, RA Colline also requested copies of
petitioner’s 1997 and 1998 income tax returns. Mr. Harbin
eventually sent petitioner’s 1998 return after RA Colline advised
him that she had obtained copies of petitioner’s 1997 return.
During the examination, RA Colline requested an interview
with petitioner to gather information about, and petitioner’s
explanation of, items on petitioner’s returns that were under
examination. Mr. Harbin absolutely refused to allow petitioner
to be interviewed. Petitioner testified for over 4-1/2 hours
during the trial of this case.
Respondent’s Determination and Denial of Petitioner’s
Refund Claim
On or about February 15, 2000, respondent denied
petitioner’s claim for refund for 1996 (relating to the November
1996 payment). The reason for disallowance was that the $1
million payment associated with petitioner’s refund request did
not qualify as tax-free income.
In the notice of deficiency, respondent determined that the
May 1996 payment, the May 1997 payment, and the November 1998
16 Bedford Falls Investors, L.P., was listed as a
partnership petitioner received income or loss from on Schedule D
of his 1996, 1997, and 1998 returns.
Page: Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 NextLast modified: May 25, 2011