-352-
The parties here do not dispute the factual findings or the
holding of the Court in Durkin v. Commissioner, supra. Nor do
the parties deny that the bonus payments constitute income to the
recipient partnerships.
On brief, respondent acknowledges Durkin did not
address the question whether the family entities or the
Levenfeld/Kanter law partners, individually, were taxable on the
bonus payment paid by Shelburne to Delta. Respondent
nevertheless argues Kanter is taxable on the share of the bonus
payments paid by Shelburne and Century to Alpha and Delta,
respectively, that flowed through CMS Investors to THC.
OPINION
A. The Parties’ Arguments
Petitioners contend the Court lacks subject-matter
jurisdiction because the Levenfeld/Kanter law firm was a TEFRA
partnership during the years at issue, and, in fact, respondent
issued an FPAA to the law partnership for 1994 which included the
subject adjustment. Petitioners also contend respondent is
collaterally estopped from attributing the income at issue to
Kanter by virtue of the Court’s holding in Durkin v.
Commissioner, supra. Finally, petitioners contend THC (as
opposed to Kanter) was a partner in CMS Investors and should be
recognized as such.
Page: Previous 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 NextLast modified: May 25, 2011