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Additionally, the regulations provide that "Certain
intermittent income producing activities occur so infrequently
that neither their recurrence nor the manner of their conduct
will cause them to be regarded as trade or business regularly
carried on." Sec. 1.513-1(c)(2)(iii), Income Tax Regs. The
regulations add that "such activities will not be regarded as
regularly carried on merely because they are conducted on an
annually recurrent basis." Id.
In the instant case, petitioner advances two arguments that
its advertising activity is not "regularly carried on" within the
meaning of section 1.513-1(c)(1), Income Tax Regs. Petitioner's
first argument is that BWE’s and McKnight’s activities should not
be attributed to petitioner for purposes of determining whether
petitioner regularly carried on its trade or business of selling
and publishing advertising. Petitioner relies on NCAA v.
Commissioner, 914 F.2d 1417 (10th Cir. 1991), revg. 92 T.C. 456
(1989). In NCAA, this Court concluded that the publisher’s
activities should be attributed to the National Collegiate
Athletic Association (NCAA) because the NCAA failed to provide
evidence regarding the extent and manner of the publisher’s
conduct in connection with the solicitation, sale, and
publication of advertising in the tournament programs. NCAA v.
Commissioner, 92 T.C. at 468. On appeal, however, the Tenth
Circuit Court of Appeals focused instead on the fact that the
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