- 13 -
raised.12 To the extent not addressed herein, those contentions
are without merit or unnecessary to reach.
To reflect the foregoing and concessions by the parties,
Decisions will be
entered under Rule 155.
12We note that the parties have argued extensively regarding
the scope of sec. 1.1367-2, Income Tax Regs. Respondent contends
that the open account debt rule of sec. 1.1367-2(a), Income Tax
Regs., does not apply to the instant case because the shareholder
advances in issue are not allowed restoration of debt basis
pursuant to sec. 1.1367-2(c), Income Tax Regs. Petitioner
contends that the open account debt rule of sec. 1.1367-2(a),
Income Tax Regs., provides for the netting of the advances and
repayments in issue at the close of the tax year for purposes of
determining income on a repayment. Based on our holding above,
we need not address the parties’ contentions concerning sec.
1.1367-2, Income Tax Regs., and leave this issue for another day.
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