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petitioner, Ms. Bowers set up an account payable in the GFLP
accounting records reflecting a debt of GFLP owed to decedent,
deductions from that amount for GFLP funds Ms. Powell used to pay
decedent’s personal living expenses, and interest allegedly paid
by GFLP on the debt. Petitioner also relies upon decedent’s and
GFLP’s retained Federal income tax returns for the taxable year
1997 to establish the existence of the debt and to show that GFLP
paid interest on the debt.
Respondent argues that petitioner has not explained which
transactions gave rise to the debt GFLP allegedly owed to
decedent and that the account payable in the GFLP accounting
records represents nothing more than “adjusting journal entries,
intended, in part, to account for Decedent’s at-will expenditure
of funds attributed to GFLP”. We agree. Neither decedent nor
GFLP executed a promissory note or any other documents to
evidence GFLP’s alleged debt to decedent. The assignment makes
no reference to the sale of any of decedent’s own property to
GFLP. Neither the GFLP accounting records nor the tax returns,
which were prepared nearly 2 years after GFLP’s debt to decedent
allegedly arose, are sufficient to prove that a valid debt
existed.
Finally, petitioner argues that decedent parted with
dominion and control but that TCO delayed transferring to GFLP
legal title to Marital Fund assets. Although TCO apparently has
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