Group Administration Premium Services, Inc., et al. - Page 20

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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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