George Georgiou and Judith Georgiou A.K.A. Judy Georgiou, et al. - Page 26

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            provided the funds to capitalize JAI and to finance the purchase                               
            of Petite.  Georgiou held himself out as the principal in                                      
            dealings with third parties, such as when Georgiou purchased                                   
            Petite using JAI as his nominee.  Georgiou transferred the JAI                                 
            stock into his living trust and signed the trust document.  The                                
            minutes of the JAI board of directors meetings reflect that it                                 
            was Georgiou, not Kolonaki, who ran the operations of JAI and                                  
            made business decisions.  The facts here are easily                                            
            distinguishable from Bollinger, where "In every case, * * *                                    
            [third parties] were aware that the corporation was acting as                                  
            agent of the partnership in holding record title."  Id. at 343-                                
                  Kolonaki provided documents to the IRS agent in an attempt                               
            to substantiate Kolonaki's beneficial ownership of JAI.  The                                   
            documents consisted of a Holding Agreement, a Supply Agreement,                                
            promissory notes with assignments, and minutes of JAI and                                      
            Kolonaki board meetings.  The dates on the documents ranged from                               
            1988 through 1990.  These documents do not establish beneficial                                
            ownership during 1990 because the documents were either created                                
            or altered in 1991 and were backdated.                                                         
                  In INI, Inc. v. Commissioner, T.C. Memo. 1995-112, a                                     
            corporation and its wholly owned subsidiary attempted to separate                              
            by executing legal documents and transferring assets and                                       
            liabilities.  The corporation and its subsidiary had filed                                     

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