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DAV's mailing list was available for rental. Id. at 1185. DAV
employed two full-time employees to administer its list rentals.
Disabled Am. Veterans v. Commissioner, 942 F.2d at 311.
Petitioner's mailing list rental activity is unlike DAV's
rental activity. Petitioner received income from the use of
its mailing list only for: (a) Alumni trips in 1990 and 1991;
(b) alumni class rings and commemorative watches; and (c) the
affinity credit card program at issue here.
Unlike DAV, petitioner did not regularly rent its mailing
list. Petitioner was not involved in the direct mail industry.
Petitioner did not issue rate cards. Petitioner used minimal
staff time to administer its rentals. Petitioner allocated 10
percent of Super's salary to develop and implement the affinity
credit card program for fiscal year 1986-87 and from July 1987 to
October 1987. Petitioner allocated 5 percent of Super's salary
to the affinity credit card program from November 1987 to April
1988. The record does not indicate that petitioner allocated
any salary to the affinity credit card program for the years in
issue. We conclude that petitioner's use of its mailing list is
entirely consistent with classifying the resulting income as a
royalty.
3. Whether USNB's Payments Were for Services: Extent
of Petitioner's Role
Respondent contends that USNB paid to obtain petitioner's
cooperation and assistance.
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