On August 3, 2022, Justice Crane of the New York County Commercial Division issued a decision in Lotwala v. Dhabuwala, 2022 NY Slip Op. 32639(U), holding that tax filings were evidence, but not proof, of membership in an LLC, explaining:
Lotwala argues that the K-ls that he received from the LLCs are proof of membership. Form K-1, that reports an individual’s income from an LLC, is evidence of, but not dispositive of, whether a party is or was a member of the subject LLC. Tax filings are not always binding judicial admissions.
(Internal citations omitted).