-355-
not have any interest in or rights to the income from the
venture.
Delta’s and Alpha’s loans to Shelburne and Century were not
investment activities of the Levenfeld/Kanter law partnership.
The law firm members who participated in these ventures had no
intention to invest on the law firm’s behalf. More importantly,
the alleged diversions of funds from Shelburne and Century (in
the form of the bonus payments) were not joint business endeavors
of Levenfeld/Kanter’s law partners, as only those members of the
law firm and/or their families who invested in CMS Investors (and
Delta and Alpha) would benefit from the bonus payments.
On the record presented, the Court concludes the bonus
payments were not income attributable to the Levenfeld/Kanter law
partnership. Consequently, the Court has subject matter
jurisdiction over the CMS Investors income adjustments at issue
in the instant deficiency cases inasmuch as they do not
constitute partnership items within the meaning of section
6231(a)(3).141
141 The CMS Investors income adjustments at issue likewise
do not constitute partnership items to CMS Investors. The only
question remaining before the Court is whether Kanter, as opposed
to THC, should be treated as the true and actual partner in CMS
Investors. Resolution of that issue does not require a
determination concerning a partnership item within the meaning of
sec. 6231(a)(3). See, e.g., Grigoraci v. Commissioner, T.C.
Memo. 2002-202.
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