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documents, and no interest payments, and the categories and
amounts shown on the Schedules L that petitioner said reflected
the loan balances outstanding at yearend between him and the
corporations were inconsistent with the face amounts of the
corporations' notes to him.
There are no loan documents beyond “fill in the blank”
promissory notes, all signed in what appears to be the same ink
with the same stated interest rate. Respondent argues that these
promissory notes were created in preparation for trial.
Petitioner has not convinced us otherwise, nor has he proven that
these notes were prepared each year to keep track of the "running
balances" between himself and the corporations. We believe it
more likely that these notes were created in preparation for
trial to try to save the bacon that had fallen into the fire when
petitioners' numbers turned up in the audit lottery.
Even if the notes were not prepared for trial, they do not
evidence normal business practices. Although the notes contain
maturity dates, there is no evidence, beyond cancellation stamps,
that either the corporations or petitioner enforced payment at
the purported maturity dates. In addition to obtaining repayment
of principal, a true lender is concerned with receiving interest.
Curry v. United States, 396 F.2d 630, 634 (5th Cir. 1968).
Although there was stated interest on the notes of 5.25 percent,
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