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affection, respect, admiration, charity or like impulses'", or
from a "'detached and disinterested generosity'," as a gift.
Commissioner v. Duberstein, 363 U.S. 278, 285 (1960) (quoting
Robertson v. United States, 343 U.S. 711, 714 (1952) and
Commissioner v. Lo Bue, 351 U.S. 243, 246 (1956)); Osborne v.
Commissioner, T.C. Memo. 1995-71.
We agree with respondent that no bona fide debt existed
between petitioner and the Institute. There was no agreement of
any type between them regarding repayment of the funds,
petitioner offered no security, and no interest was required or
paid. However, this does not dispose of the issue. As the
testimony made clear, the Institute served merely as a conduit to
effectuate a transfer of funds from D'Souza to petitioner. The
Institute provided the funds solely upon D'Souza's request; it
did not receive any services by petitioner, and it did not
acquire any publishing or royalty rights held by petitioner. It
is also clear that D'Souza intended the transfer to be either a
gift or a loan to petitioner. Under either scenario, however,
the $10,000 is not taxable income to petitioner, and we need not
explore the issue further. It also follows that petitioner would
not be liable for any tax on self-employment income.
Respondent determined that petitioner was liable for an
addition to tax under section 6651(a) for failure to file a
return. Section 6651(a) provides for an addition to tax in the
case of a failure to file a return unless it is established that
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