- 3 - operations. Mayflower owned 100 percent of Sabinas Claims Service, Inc., and 100 percent of Texas Premium Finance. During the years in issue, petitioner owned 100 percent of Jordan General Insurance Agency, Inc. (Jordan), an S corporation, and was involved in a number of other insurance-related enterprises in which he held ownership interests. During the years in issue, each of petitioners received wages from one or more of the insurance-related enterprises. Advances to Petitioner During 1986 and 1987, petitioner received advances of $1,175,044 and $1,469,974.40 from Mayflower. During 1988, petitioner received advances of $329,266.66 from Jordan. Petitioner executed promissory notes in the amount of the advances. None of the amounts advanced were ever repaid. The advances were shown on Mayflower’s 1987 U.S. Corporation Income Tax Return, Form 1120, as “loans to stockholders”. The amounts were not reflected as outstanding at the end of 1988 on Mayflower’s corporate tax return for that year, and no loans to stockholders were shown on Jordan’s corporate tax return for 1988. In December 1989, Mayflower and Jordan each filed petitions in bankruptcy. The amounts that were advanced to petitioner were not shown as property of Mayflower or Jordan in the schedules filed in the bankruptcy proceeding.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011