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Constr. Co. v. Commissioner, supra, and Comtec Sys., Inc. v.
Commissioner, supra, also provided evidence comparing the
compensation at issue with that paid by similar companies. There
is no such evidence here. In BOCA Constr., Inc. v. Commissioner,
supra, and RAPCO, Inc., v. Commissioner, supra, the taxpayer
applied a longstanding bonus formula or compensation plan. There
is no similar formula or plan in this case. In Comtec Sys., Inc.
v. Commissioner, supra, the taxpayer provided evidence which
compared the compensation at issue with compensation in a similar
company. There is no similar evidence here.
Petitioner contends that this case is similar to Mortex
Manufacturing Co. v. Commissioner, T.C. Memo. 1994-110. In that
case, we found that it was important that the company had a
longstanding compensation plan for its officer-stockholders that
was well within industry norms. Petitioner did not make this
showing. The taxpayer in Mortex provided evidence comparing the
compensation at issue to various published surveys. Petitioner
has submitted no such evidence.
Petitioner cites Universal Manufacturing Co. v.
Commissioner, T.C. Memo. 1994-367, to show that Mr. Cummings'
compensation from Dacor and Kadac was reasonable because it was
2.35 percent of net sales. Universal Manufacturing Co. v.
Commissioner, supra, is similar to BOCA Constr., Inc. v.
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