Terry Nathan Norman - Page 8

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          the $8,448 was includable in petitioner’s gross income and issued           
          petitioner a notice of deficiency.                                          
               A partnership is generally not subject to income tax.                  
          Persons carrying on the business as partners are liable for                 
          income tax in their separate or individual capacities.  Sec. 701.           
          In general, a partner must take into account separately his                 
          distributive share, whether or not distributed, of each class or            
          item of partnership income, gain, loss, deduction, or credit.               
          Sec. 1.702-1(a), Income Tax Regs.  A partner’s distributive share           
          of income, gain, loss, deduction, or credit generally is                    
          determined by the partnership agreement.  Sec. 704(a).                      
               Petitioner does not dispute the amount of PTSI’s income in             
          2002.  Nor does he directly challenge the amount of his                     
          distributive share that PTSI reported.  Instead, he believes he             
          should not be taxed on the $8,448 because the corporation, as               
          general partner of PTSI, allegedly committed various wrongful               
          acts.  Petitioner asserts the corporation refused to provide him            
          with PTSI’s financial information, refused to make distributions            
          to him, and embezzled partnership funds.                                    
               Although we address the merits of petitioner’s allegations             
          infra, we do not do so here.  That is because even if                       
          petitioner’s assertions are true, petitioner must report his                
          distributive share of PTSI’s income in 2002.  See Burke v.                  
          Commissioner, T.C. Memo. 2005-297 (taxpayer’s distributive share            






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