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did not allocate any of its secretary's salary to the affinity
credit card program.5 Petitioner allocated 5 percent of Wirth's
salary to the travel program from 1988 through 1991. Petitioner
allocated 25 percent of its secretary's salary to the travel
program in 1988 and 1989 and 50 percent in 1990 and 1991. These
allocations are not comparable to the level of commitment
exhibited by DAV. 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.
a. Petitioner's Solicitation of Its Members
Respondent contends that petitioner's solicitation of its
members for the credit card program precludes royalty treatment
for the resulting income because petitioner mailed some
solicitation materials twice during the years at issue (1990 and
1991) and four times during prior years; hired a professional
writer to write one letter; used an off-campus print shop three
times; and reviewed solicitation materials prepared by USNB.
5 Respondent asserts that 25 percent of petitioner's
secretary's salary was allocated to the affinity credit card
program. However, respondent cites and we have found no support
for this assertion in the record.
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