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S. Rept. 91-552, at 29 (1969), 1969-3 C.B. 423, 443. If the
foundation and a disqualified person entered into a prohibited
transaction, then the 1969 Act imposed various levels of
sanctions.
The question before us is whether the functions performed by
GMC qualify as "personal services" under section 4941(d)(2)(E).
Thus, we must construe what activities Congress intended would
qualify as personal services. At the outset, we can look to the
regulations interpreting the statute. While those regulations do
not define the term "personal services", they offer several
examples of activities that constitute "personal services". See
sec. 53.4941(d)-3(c)(2), Foundation Excise Tax Regs. The activ-
ities set out in the examples include legal services, investment
management services, and general banking services. Id.
Respondent argues that the character of the services
performed by GMC, namely maintenance, janitorial, and security,
are different than those outlined in the regulations. We agree.
The services in the regulations are essentially professional and
managerial in nature. These types of services contrast with the
nature of the services rendered by GMC.
GMC contends any activity is a service where capital is not
a major factor in the production of income. Under this interpre-
tation, as set out in the brief, "the sale of goods is not the
rendering of personal services, but certainly all other services
which assist the private foundation in carrying on its legitimate
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