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petitioner has received no benefit from any of the 1991 interest
payments and that those funds were transferred to a Bank of
Bermuda account over which petitioner did not exercise any
control.
Lastly, petitioners assert that, even if the Court were to
find that Aldergrove must recognize the 1991 interest payments as
income, petitioners are taxable only on petitioner's distributive
share of that income.
Respondent asserts that this Court in Monahan v.
Commissioner, T.C. Memo. 1994-201 (Monahan I), affd. without
published opinion 86 F.3d 1162 (9th Cir. 1996),1 found that, in
1991, petitioner controlled Aldergrove partnership matters and
benefited from and controlled the funds in the Aldergrove
account. Relying on the doctrine of collateral estoppel,
respondent argues that petitioner is precluded from relitigating
those issues. Since the 1991 interest payments were deposited in
the Aldergrove account in 1991, respondent argues that those
payments are taxable to petitioner.
1 It should be noted that 9th Cir. R. 36-3 provides that
dispositions other than opinions or orders designated for
publication shall not be regarded as precedent and shall not be
cited to or by the Court of Appeals for the Ninth Circuit or any
district court of the Ninth Circuit, except when relevant under
the doctrines of law of the case, res judicata, or collateral
estoppel.
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