Oceanic Leasing, Douglas F. Spaulding, Tax Matters Partner - Page 14

                                       - 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 this           







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