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When, in 1976, Iranian Air Force officials had been treated
rudely by a Clark employee, it was petitioner, not a Diesel Power
representative, who chastised Clark by letter. In the course of
this letter petitioner emphasized that, without his services,
Clark never would have even had a chance of receiving the large
forklift order. Petitioner further emphasized that his CTC
employees had spent considerable time working out the details of
the letter of credit and payment of commissions. During the
years 1973 through 1977 petitioner and his CTC employees did all
of the billing, and the directing of funds. We conclude that
throughout most of the relationship with Clark, at least through
1977, petitioner was in control of the commissions earned.
Therefore, petitioner is taxable on the Diesel Power commissions
properly alleged by respondent for all years through 1977.
The allegations pertaining to 1977 require special
discussion. Respondent determined in the notice of deficiency
that there was $22,545.46 in unreported income from Clark as
reflected on the CTC receipts journal. The stipulations indicate
that the CTC receipts journal records $14,013.71 as Diesel Power
commissions, which is close to the figure requested by respondent
in her proposed findings. For the reasons stated above, we
conclude that $14,013.71 constitutes unreported income for 1977.
Respondent also asserts on brief an additional amount of
$37,359.91 that was not recorded on the CTC receipts journal for
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