Terry Nathan Norman - Page 16

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               Finally, as for petitioner’s claims that PTSI withheld                 
          information, Mr. Stern’s letter indicates that PTSI prepared and            
          mailed Forms K-1 to petitioner at the address PTSI had on file              
          for him.  Petitioner did not deny that he changed his mailing               
          address, nor did he contend that he provided PTSI with updated              
          information.  In sum, while petitioner claims that PTSI                     
          “disappeared”, petitioner appears to have made little effort to             
          stay in contact with the partnership.                                       
               B.  PTSI’s Alleged Failure To Make Partnership Distributions           
               Petitioner contends that PTSI did not make distributions to            
          him at any time.  Even if petitioner is correct, the agreement              
          provides that no cash shall be distributed to the partners unless           
          PTSI “has acquired a cash reserve of at least $350,000”.  As                
          discussed supra, the agreement called for petitioner to                     
          contribute $100,000 and the corporation to contribute $50,000,              
          for a total of $150,000.  There is no indication PTSI accumulated           
          the additional cash necessary to fund the cash reserve and enable           
          the partnership to make distributions.  To the contrary, the                
          financial difficulties mentioned in Mr. Stern’s letter indicate             
          that PTSI was, in fact, losing money for most of its existence.             
          Petitioner introduced no credible evidence to contradict the                
          statements in Mr. Stern’s letter.                                           









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