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the effective and efficient enforcement of internal revenue laws.
Consequently, the partnership items of such partner, arising in a
partnership taxable year ending on or before the last day of the
taxable year of the partner for which a deficiency notice based
upon an indirect method of proof is mailed to the partner, shall
be treated as nonpartnership items as of the date on which the
deficiency notice is mailed. Therefore, respondent was not
required to issue National Land Bank an FPAA before mailing the
statutory notice of deficiency to petitioner.
D. Miroyal Income
At trial, petitioner asserted the Fifth Amendment privilege
and refused to admit or deny whether she provided real estate
services in 1999 and 2000. Similarly, petitioner refused to
confirm or deny whether she managed real property in 1999 and
2000 on the same Fifth Amendment reasoning.
Respondent for lack of substantiation disallowed Miroyal’s
claimed deductions for 1999 as follows: $20,165 for repairs and
maintenance, $15,696 of interest, and $14,107 of other deductions
(i.e., insurance $5,913, miscellaneous $6,351, and utilities
$1,843). Petitioner signed Miroyal’s 1999 and 2000 Federal tax
returns, naming herself the tax matters partner for 2000, yet she
provided no receipts or records but provided only a typed list
showing the total amounts Miroyal allegedly expended on the
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