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existing indebtedness to Paulan, which would be ineffective to
create bases in Sidal under section 1366(d)(1)(B). See Bergman
v. United States, 174 F.3d 928 (8th Cir. 1999); Underwood v.
Commissioner, 535 F.2d 309 (5th Cir. 1976).
Conversely, the other three sets of promissory notes predate
the Paulan direct payments to which they relate. Those
promissory notes also fail to support a finding that the
corresponding Paulan direct payments, in substance, created bona
fide indebtedness from Sidal to petitioners and from petitioners
to Paulan in the amounts set forth and on the dates thereof. See
Perry v. Commissioner, 392 F.2d 458 (8th Cir. 1968) (predated
notes insufficient to prove indebtedness from an S corporation to
the taxpayer shareholder), affg. 47 T.C. 159 (1966); Thomas v.
Commissioner, T.C. Memo. 2002-108 (promissory note bearing a date
prior to the transaction to which it relates given no weight),
affd. 67 Fed. Appx. 582 (11th Cir. 2003).
(4) The Minutes
The Paulan minutes, in essence, reflect meetings at which
petitioners, acting on behalf of Paulan, authorized loans to
themselves individually, and the Sidal minutes, in essence,
reflect meetings at which petitioners, acting on behalf of Sidal,
authorized borrowings from themselves individually. As mere
authorizations, those meetings are not evidence that the loans,
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