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made a $25,000 partial repayment of its second loan. The second
promissory note, signed on February 22, 1999, was in the amount
of $100,000. (From the dates of the loans and the repayment, we
gather that this promissory note was for the remaining amounts
due on the second, third, and fourth loans. The record does not
indicate whether promissory notes had been issued at the times
the loans were made.) Each of these promissory notes was a 12-
percent-per-year demand note; each stated it was secured by all
machinery and equipment at Jocks and Jills, Inc.
After a series of monthly Jocks and Jills, Inc., $5,000
checks to the Plan, on January 28, 2000, petitioner paid
$155,571.57 to the Plan as a repayment plus interest on the
$200,000 Jocks and Jills, Inc., loan.
On December 8, 1999, Jocks and Jills, Inc., paid $100,000 to
the Plan as a repayment “in full” on the February 22, 1999,
promissory note. The check making this payment had petitioner’s
stamped signature.
All of the principal of the Plan’s loans to Jocks and Jills,
Inc., has been repaid. See supra note 2.
3. Tax Returns
Petitioner did not file any excise tax returns, Forms 5330,
Return of Excise Taxes Related to Employee Benefit Plans, for the
relevant taxable periods. The record does not indicate whether
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