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business increased, and she began to receive payments directly
from the Woodbine business account.
Although Alice Berger never participated in the day-to-day
operations of the Woodbine business after June 1986, neither did
Howard Berger. Cf. Blunt v. Commissioner, supra (joint owner of
real estate was sole and active operator and owner of the
business). Gregg Kunkowski managed the operations, soliciting
customers, negotiating contracts with customers and contractors,
paying the bills, and keeping the books and records. He
approached the Bergers only for major decisions.
In 1986, Gregg Kunkowski presented an employment proposal to
Dr. Forgotson, Alice Berger's attorney, who drafted an employment
agreement. On December 1, 1986, Alice Berger signed the
agreement (as did Howard Berger)
between ALICE BERGER and HOWARD BERGER, husband and
wife, and owners of the Woodbine Cemetery and
Mausoleum, * * * hereinafter referred to as the
"employers", and GREGG KUNKOWSKI, * * * hereinafter
referred to as the "employee".
By presenting the employment agreement to Alice Berger's
representative, Gregg Kunkowski treated Alice Berger as an owner
of the business. By signing the employment agreement, Alice
Berger bound herself to the terms of the agreement and evidenced
her acceptance of the benefits and burdens of her joint ownership
of the Woodbine business.
By September 22, 1987, Alice Berger exercised enough control
over the Woodbine business to order Gregg Kunkowski to stop
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