John M. Monahan Rita K. Monahan v. Commissioner of Internal Revenue Service

86 F.3d 1162 77 A.F.T.R.2d 96 -2340, 96-2 USTC P 50,386 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. John M. MONAHAN; Rita K. Monahan, Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE SERVICE, Respondent-Appellee. No. 94-70847. United States Court of Appeals, Ninth Circuit. Argued and Submitted May 9, 1996. Decided May 31, 1996. Before: GOODWIN, SKOPIL, and SCHROEDER, Circuit Judges. MEMORANDUM * 1 Taxpayers appeal the determination that they owe additional taxes for 1984-88, contesting the tax court's findings that the sale of a partnership interest in 1984 created a taxable gain because it relieved taxpayers of debt, and that alleged payments on the debt and other financial dealings were sham transactions. We have carefully reviewed the record and the tax court's decision, and we conclude that the tax court's findings of fact are not clearly erroneous. We agree with the tax court that taxpayers had ultimate control of the monies involved in all of the…