On December 21, 2019, Carl Banks, a cash basis taxpayer, in payment of a debt owed him for services rendered, received from his client, Matt Martin, a promissory note Martin had previously received from Sandra Smith at the time he loaned her $45,000. The note bore adequate interest and while it had a face amount of $45,000, its FMV was equal to $31,000. In preparing his 2019 tax return, Banks did not include the receipt of the note in his income for 2019. On August 12, 2022, the Service commenced an audit of his 2019 tax return and ultimately made a timely audit adjustment including $45,000 in Banks' 2019 taxable income. Assuming Banks wishes to contest the audit adjustment, advise him as to the arguments available to him and assess his chances of success. Fully explain your