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Respondent determined a $3,674 deficiency in petitioner’s
2002 Federal income tax. After a concession by respondent,1 the
issues for decision are: (1) Whether petitioner was a partner in
Physical Therapist Search International, Ltd. Limited Partnership
(PTSI or the partnership); (2) if he was a partner in PTSI,
whether petitioner must report a distributive share of PTSI’s
income; (3) whether petitioner is entitled to a theft loss
deduction under section 165(e) relating to certain actions taken
by PTSI’s general partner; and (4) whether respondent is estopped
from asserting a deficiency against petitioner.
Some of the facts have been stipulated, and they are so
found. The stipulation of facts and attached exhibits are
incorporated herein by this reference. Petitioner resided in
Playa Del Rey, California, when his petition was filed. For
convenience, we combine our findings and discussion herein.
Burden of Proof
Pursuant to section 7491(a), the burden of proof as to
factual matters shifts to respondent under certain circumstances.
See also Rule 142. Petitioner has neither alleged that section
7491(a) applies nor established his compliance with the
requirements of section 7491(a)(2)(A) and (B) to substantiate
1 Respondent concedes that petitioner is not liable for
self-employment tax of $1,194. The adjustments in respondent’s
notice of deficiency not addressed in this opinion are
computational.
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Last modified: May 25, 2011