- 12 -
Having sustained respondent’s determinations and
computations without having reached the merits of petitioners’
arguments and objections, we make some final observations. We
make these observations to allay any impression--which
petitioners have tried to create, in arguing their case and in
contesting respondent’s Rule 155 computations--that petitioner
has been treated unfairly in the TEFRA proceeding and in this
proceeding.
In making these observations, we do not intend to belittle
the economic insecurity and resulting aggravation and anxiety
that petitioner experienced in having been induced to join a law
firm that was about to go under. But these are matters for which
the tax law provides no redress; we still would have sustained
respondent’s determination and adopted respondent’s computations,
even if we had been able to rule on the merits of petitioner’s
arguments and objections.
In 1987, the year Finley Kumble announced its dissolution,
petitioner received cash distributions, in the form of
partnership draws, that substantially exceeded his share of
partnership profits. As a result, petitioner had a negative
capital account at the end of 1987 that could only go more
negative in the intervening years until 1992, the taxable year in
issue. In that year, petitioner agreed with the Finley Kumble
bankruptcy trustee to make a $15,000 capital contribution with
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011