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The first category of factors identified by the Court of
Appeals for the Ninth Circuit concerns the employee's role in the
company. Relevant considerations include Ginger's
qualifications, hours worked, duties performed, as well as his
general importance to petitioner's success. American Foundry v.
Commissioner, 536 F.2d 289, 292-293 (9th Cir. 1976), affg. in
part and revg. in part 59 T.C. 231 (1972).
Ginger was a highly motivated employee working as much as
15.5 hours a day. His evenings and weekends were often spent
marketing petitioner's services to existing customers and
potential customers.
Despite his lack of formal business training, Ginger
acquired the skills necessary to manage every facet of
petitioner's operations. He attended economic forecast
luncheons. He joined organizations that gave him access to other
business executives and entrepreneurs, and he sought advice from
these individuals.
Ginger handled all of petitioner's executive and managerial
duties. Other employees assisted Ginger, but petitioner had no
other managers or executives. Ginger received assistance in the
areas of bookkeeping, field supervision, and estimating, but that
assistance extended only to routine matters. Ginger devised and
implemented petitioner's corporate strategy of targeting the
large residential developers. Ginger's financial discipline and
marketing abilities brought petitioner's corporate strategy to
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