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agreement entered into by BERM. There was no attempt to
renegotiate these contracts on behalf of Kramer Hospitality.5
See Haley Bros. Constr. Corp. v. Commissioner, 87 T.C. 498, 515-
516 (1986).
Petitioner has failed to show that a liquidating
distribution of BERM’s assets occurred in 1994. Petitioner has
not offered any corroborating evidence, besides his testimony, to
establish that any distribution, liquidating or nonliquidating,
occurred in 1994. It is well settled that we are not required to
accept a taxpayer’s self-serving testimony in the absence of
corroborating evidence. See Niedringhaus v. Commissioner, 99
T.C. 202, 212 (1992).
Assuming arguendo, that petitioner did attempt to distribute
BERM’s assets to himself, Illinois law prohibits such a
distribution if the corporation is insolvent. See 805 Ill. Comp.
Stat. 5/9.10(c)(1). After reviewing BERM’s bank accounts,
corporate tax returns for 1994, Forms 1120 and 1120X, and
petitioner’s testimony, we find that BERM could not make a
liquidating distribution, as petitioner suggests, because it was
insolvent at that time.6
5 Petitioner testified that he conferred with his agent
about the insurance contracts and it was “kind of a calculated
decision” to maintain BERM’s insurance due to the insufficiency
of his personal cash flow.
6 According to BERM’s Form 1120, U.S. Corporation Income
(continued...)
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