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the instant case. A taxpayer may pay the deficiency and interest
at any time after the notice of deficiency is mailed and still be
entitled to his "day" in this Court. Sec. 6213(b)(4); Estate of
Richter v. Commissioner, 16 B.T.A. 936, 937 (1929). The taxpayer
who so pays the deficiency and interest and then prevails will be
entitled to a refund or credit, sec. 6512(b)(3)(A), as well as
interest thereon. Sec. 6611.4
2. Bad Debt Deduction for 1981
From January 1, 1979 through June 23, 1981, petitioner John
J. Kaiser (petitioner) was the 100-percent shareholder of MACS
Corp. (MACS), an S corporation in the business of buying and
selling cleaning supplies in the Bridgeport, Connecticut, area.
During 1979 and subsequent years through 1981, petitioner
advanced a total of $111,725 to MACS. On its 1981 Form 1120S
(U.S. Small Business Corporation Income Tax Return) MACS reported
paid-in or capital surplus in the amount of $1,000 and loans from
shareholders in the amount of $110,725.
On their 1979, 1980, and 1981 Federal income tax returns,
petitioners claimed losses from MACS in the total amount of
$95,661 and reduced petitioner's basis in the shareholder loans
4 Petitioners have not presented us with any argument that the
alleged payments were improperly applied by respondent or that
they were deposits against the deficiencies determined by
respondent. See Risman v. Commissioner, 100 T.C. 191 (1993).
Indeed, there would be insufficient facts in the record before us
to decide such issue.
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