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had few employees because its claims adjusters were independent
contractors, (c) petitioner’s billing and collection process was
simple, and (d) petitioner solicited business from only six to
eight companies from 1990 to 1994. However, respondent concedes
that Eberl’s excellent performance in obtaining and retaining
clients for petitioner offsets the relative simplicity of its
business.
Petitioner had gross receipts of more than $20 million in
fiscal year 1992, and more than $9 million in fiscal year 1993.
It arranged for the services of almost 200 claims adjusters
during the years in issue. Petitioner's business required
expertise in catastrophic claims adjusting, bidding, marketing,
and management. Petitioner was responsible for getting a large
number of claims adjusters located throughout the United States
to disaster sites immediately. This was logistically complex.
It is easy to say that founding and running petitioner was
simple, but we do not think anyone who accomplished what Eberl
did would find that characterization to be fair. This factor
favors petitioner.
4. General Economic Conditions
General economic conditions may affect a company's
performance and thus show the extent of the employee's effect on
the company. Rutter v. Commissioner, supra; Mayson Manufacturing
Co. v. Commissioner, supra.
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