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Commissioner, 500 F.2d at 152; Wagner Constr., Inc. v.
Commissioner, supra.
Petitioner claims that through Darle’s, Rocky’s, and Dean’s
exceptional qualifications it was able to maintain fairly
consistent yearly sales and remain profitable in a highly
competitive industry. Respondent agrees that Darle, Rocky, and
Dean did “contribute superior qualifications to the successful
operation of the petitioner[’]s business”.
A factor that contributed to petitioner’s success was
petitioner’s ability to obtain profitable construction jobs.
Petitioner obtained jobs primarily by submitting the lowest bid
to a general contractor, and Darle was solely responsible for
preparing each bid. Darle’s estimate of the cost to complete a
job was the most significant aspect of preparing a bid. If
Darle’s estimate was inaccurate, petitioner would neither receive
the job, because its bid was too high, nor make a profit. Darle
therefore deserved high compensation because of his knowledge and
experience.
Although Rocky was petitioner’s vice president and Dean was
petitioner’s treasurer during the years in issue, the facts
indicate that they primarily performed the duties of job-site
supervisors, not executives. Each has been working for
petitioner since the early 1980s and worked between 55 and 60
hours per week during the 1990s and 2000. Petitioner’s financial
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