- 2 - unrelated business taxable income pursuant to sec. 512(a)(1), I.R.C. P contends that it is not engaged in such a business and that, in any event, such payments are royalties that are excluded from unrelated business taxable income pursuant to sec. 512(b)(2), I.R.C. Held: Excepting the portion of the list rental payment that compensates the list broker, or the list manager in its capacity as list broker, the mailer's list rental payment in each list rental transaction is a royalty that is excluded from unrelated business taxable income pursuant to sec. 512(b)(2), I.R.C. Held, further, the list brokerage activities are not royalty-related activities. Held, further, the list brokers and the list manager, in its capacity as list broker, do not act as P's agents. Consequently, the list brokerage activities and any compensation received by the list brokers or the list manager, in its capacity as list broker, are not attributable to P. Albert G. Lauber, Jr., Milton Cerny, Lloyd H. Mayer, Julie W. Davis, and Carl S. Kravitz, for petitioner. Dianne I. Crosby and Bettie N. Ricca, for respondent. WELLS, Judge: Respondent determined deficiencies in petitioner's Federal income taxes as follows: Year Deficiency 1991 $17,905 1992 55,009 1993 133,542 Unless otherwise indicated all section references are to the Internal Revenue Code in effect for the years in issue, and allPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011