- 23 -
opposed to the efforts and business acumen of the employees.
General economic conditions may affect a business' performance
and indicate the extent (if any) of the employees' effect on the
company. Mayson Manufacturing Co. v. Commissioner, 178 F.2d at
119-120. Adverse economic conditions, for example, tend to show
that an employee's skill was important to a company that grew
during the bad years.
At trial, petitioner presented expert witness testimony as
to the reasonableness of Rogers' compensation. Expert witness
testimony is appropriate to help the Court understand an area
requiring specialized training, knowledge, or judgment. Fed. R.
Evid. 702; Snyder v. Commissioner, 93 T.C. 529, 534 (1989). The
Court, however, is not bound by an expert's opinion. We weigh an
expert's testimony in light of his or her qualifications and with
respect to all credible evidence in the record. Depending on
what we believe is appropriate under the facts and circumstances
of the case, we may either reject an expert's opinion in its
entirety, accept it in its entirety, or accept selective portions
of it. Helvering v. National Grocery Co., 304 U.S. 282, 294-295
(1938); Seagate Tech., Inc. & Consol. Subs. v. Commissioner, 102
T.C. 149, 186 (1994).
Petitioner's expert, Mr. James V. Hughes (Hughes), is an
expert on compensation with Arthur Anderson & Co. Hughes
testified at trial and submitted a report that he coauthored with
Bruce K. Benesh (Benesh). Benesh did not testify at trial.
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011