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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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