- 14 - Willner acquiesced in Hardin's fraudulent activities so long as they brought him tax benefits and cash distributions exceeding his contributions. See Mishawaka Properties v. Commissioner, 100 T.C. 353, 367 (1993) (where a partner has voluntarily permitted another partner's petition and apparent authority to exist, the "situation * * * should not redound to their own benefit and to respondent's detriment"). The procedural difficulties of TEFRA do not require us to reward him for investing in sham entities that did not file separate partnership returns for the years for which he claimed fictitious partnership losses. Willner points out various inconsistent actions taken and errors made by respondent's revenue agent. Respondent makes various arguments based on speculation as to what "must have been" the arrangement between Hardin and various individual investors. Certain of those investors testified, and respondent presented documentary evidence concerning the tax treatment of other investors. We have not discussed in this opinion either the errors made by the revenue agent or the differences among other persons who invested in Hardin's Oceanic Leasing scheme. Nor have we discussed the complex and frequently changing positions of other investors who have appeared during the pendency of this proceeding. The only issue before us is whether Willner had an interest in the entity that is the subject of thisPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011