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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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