William J. and Sandra D. Heitz - Page 11

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          Commissioner, 95 T.C. 525, 553 (1990), affd. 965 F.2d 1038 (11th            
          Cir. 1992).  Case law has provided an extensive list of factors             
          that bear on the determination of reasonableness.  Mayson                   
          Manufacturing Co. v. Commissioner, 178 F.2d 115, 119 (6th Cir.              
          1949), affg. a Memorandum Opinion of this Court.  No single                 
          factor is determinative.  Id.  In Edwin's, Inc. v. United States,           
          501 F.2d 675, 677 (7th Cir. 1974), the Court of Appeals for the             
          Seventh Circuit, to which this case is appealable, divided these            
          factors into seven categories:  (1) The type and extent of the              
          services rendered; (2) the scarcity of qualified employees; (3)             
          the qualifications and prior earning capacity of the employee;              
          (4) the contributions of the employee to the business venture;              
          (5) the net earnings of the employer; (6) the prevailing                    
          compensation paid to employees with comparable jobs; and (7) the            
          peculiar characteristics of the employer's business.  For any               
          given position, there will be a range, not unduly narrow, of                
          compensation that could properly be considered “reasonable”.  Id.           
               A.  Type and Extent of Services                                        
               The first category of factors identified by the Court of               
          Appeals concerns the type and extent of the employee's services             
          for the company.  Relevant factors include the employee's                   
          position, hours worked, and duties performed.  Home Interiors &             








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