Sunbelt Clothing Company, Inc., f.k.a. Unprinted T-Shirt Warehouse, Inc. - Page 15

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          energy.  See Home Interiors & Gifts, Inc. v. Commissioner, supra            
          at 1158; Dave Fischbein Manufacturing Co. v. Commissioner, supra.           

          2.  Nature, Extent, and Scope of the Employee's Work                        

               An employee's position, hours worked, duties performed, and            
          general importance to the success of a business may justify high            
          compensation.  Home Interiors & Gifts, Inc. v. Commissioner,                
          supra at 1158.  In this case, the history of Messrs. Bennett's              
          and Sokol's contributions to petitioner must be considered,                 
          rather than just their contributions during the years in issue,             
          because the compensation petitioner paid to them during the years           
          in issue represents, in part, an attempt to rectify prior                   
               Mr. Bennett was petitioner's key employee and the main                 
          reason for its success.  As president, he was the driving force             
          behind petitioner's business from its inception.  Mr. Bennett was           
          responsible for the designing and selection of the clothes                  
          petitioner sold.  He was also responsible for the design and                
          creation of petitioner's catalog--its sole method of advertising.           
          Mr. Bennett ensured that the catalog was photographed, assembled,           
          printed, and mailed to his specifications.  He also oversaw in-             
          house store order operations, forecasting demand, developing a              
          customer base, overseeing facilities construction, and working              
          with banks to ensure financial stability for petitioner.                    

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