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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-
344.
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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